FX.co ★ UK Business Morale Deteriorates Most Since Covid Crisis

The CBI’s quarterly gauge of UK manufacturing optimism slumped to -65 in April from -19 in January, its lowest reading since 2020, as the war in Iran heightened uncertainty. The survey pointed to mounting pressure on supply chains and rising costs, with firms becoming markedly more pessimistic about the outlook. Order books weakened further, with the balance declining to -38 from -27 in March, well below the long-run average. At the same time, inflation expectations spiked, with the price index jumping to +32 from +12, the largest monthly rise on record. Investment intentions also deteriorated sharply, with planned spending on buildings, machinery, and training falling to their lowest levels since April 2020.