Blow to UK manufacturing amid tax and trade war fears

MANUFACTURING production fell in the first quarter of the year for the first time in a decade, figures show.

- Elliot Gulliver-Needham

It came as fears over a global trade war and rising taxes hit firms.

Output was down 1% in the first three months of 2025 after a 20% rise in the quarter before, with UK orders dropping 7%, Made UK data show.

The industry body said: "Albeit the sector-wide contraction is only minor, the negative balance at the start of a year is an ominous one."

It is now forecasting that the manufacturing sector will contract by 0.5% this year, down from a previous forecast of -0.2%, before growing by 1% next year.