LONDON, April 23 (Reuters) – British manufacturers have turned their most pessimistic since the start of the COVID-19 pandemic due to the Iran war and a measure of the expectations for inflation has surged, according to a survey published on Thursday.
The Confederation of British Industry also showed firms’ investment plans for buildings, plant and machinery and training were the weakest since April 2020.
“Warning signs are flashing in this survey,” Ben Jones, the CBI’s senior lead economist, said. “It’s clear that the war in the Middle East is contributing to rising uncertainty, with supply chains beginning to see some renewed strain and cost pressures intensifying.”
The survey’s quarterly measure of optimism about the business outlook tumbled to -65 in April from -19 in January.
The CBI’s monthly order book balance sank to -38 from -27 in March, falling further below its long-run average of -14.
The survey’s gauge of expected prices jumped to +32 from +12 in March, representing the biggest month-to-month increase since records began in 1975.
The survey was based on responses from 276 manufacturers received between March 25 and April 13.
(Writing by William Schomberg, editing by Andy Bruce)
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