Global trade tensions hit UK manufacturing sector

According to British industry body Make UK, the country's manufacturing output fell by 1% in the first three months of 2025, following a 20% rise in the previous quarter. The order intake fell by 7%.

As representatives of the organization noted, despite the generally small decrease in the indicator, its negative dynamics is an unfavorable signal.

As Make UK analysts forecast, the manufacturing sector will shrink by 0.5% this year. Earlier estimates suggested a contraction of 0.2%. Next year it is expected to grow by 1%.

The basic metal sector suffered the most, with a 50% drop in output this quarter. Electrical and metal products were also significantly affected, with a 12% drop.

Recruitment intentions in the industry declined as well, falling from 8% to 3%. Half of the companies suspended recruitment amid changes in the fiscal policy of the country's authorities.

Meanwhile, growth in export orders fell to just 1% from the 10% mark in the previous quarter. Pressure on manufacturers is caused by global trade tensions triggered by the US tariffs.