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Sign InOptimism within the UK industrial sector has plummeted at its fastest rate since the onset of the Covid-19 pandemic, according to the latest CBI data. Output price expectations surged to +32 in April, marking the largest one-month jump since records began in 1975, driven by supply shocks linked to the Iran conflict. The index for output volume expectations for the next three months also saw a sharp decline, falling to -20 from -3 in the previous period. Analysts suggest that recent activity reflects 'frontloading' of orders as firms build safety stocks ahead of anticipated price hikes. These record-breaking price expectations and pandemic-level pessimism signal a heightened risk of stagflation for the UK economy. Consequently, industrial firms are reportedly cutting investment intentions in infrastructure and training amid the worsening macroeconomic outlook.