UK manufacturers are signalling that a long downturn may be easing, according to the CBI’s latest Industrial Trends Survey, reported by Sharecast. Output volumes fell in the three months to October, with the weighted balance at -10 from -4, yet firms expect production to be broadly flat through to January. For Irish manufacturers that sell into and source from Britain, a stabilising UK market carries commercial weight.

Three signals make the survey encouraging for C-suite leaders across manufacturing Ireland: brighter expectations for production, a slowing decline in new orders, and the prospect of renewed hiring. Cost pressure and cautious investment temper the picture, but the direction of travel has improved. Irish firms, already expanding strongly at home, are well placed to benefit if the UK recovery takes hold.

Expectations are the strongest signal. The forward-looking output balance reached -1, up from -30 in July and its best reading since February 2025. CBI senior economist Cameron Martin said firms expect a prolonged period of falling output to end and anticipate their first increase in headcount in two years. Hiring intentions point to cautious optimism about the months ahead.

Total new orders fell at the slowest pace since April 2025, with a balance of -16 against -24 in July, as domestic orders registered -13 and export orders -15. Irish manufacturing is moving in the opposite direction. The AIB Manufacturing PMI reached 55.5 in September, with new orders rising for a 21st consecutive month, comfortably above the UK’s 52.0.

Costs remain the central challenge. Average costs rose at a balance of +60, three times the long-run average of +20, and are expected to stay there through January. Selling prices are forecast to rise more slowly than costs, which keeps margins under pressure, while labour shortages are picking up. Competitiveness also deteriorated in all major markets, and investment intentions remain weak.

Three actions can help Irish manufacturers turn UK stabilisation into advantage. First, deepen lean manufacturing programmes to offset unit cost inflation without relying on price rises. Second, strengthen supply chain resilience through dual sourcing and energy cost planning, given that UK exports to Ireland totalled £56.4 billion (approximately €67 billion) in the four quarters to the end of 2025. Third, plan hiring and apprenticeships now so capacity is ready when orders recover.

The October CBI survey offers measured but genuine optimism. Stabilising output, a narrowing fall in orders and planned hiring suggest the UK market is approaching a turning point, even as costs bite. For Ireland, where the PMI sits well inside expansion territory, firms that pair operational discipline with manufacturing excellence can capture demand as it returns. The outlook across Britain and Ireland is improving, and leaders who prepare now will benefit.