LONDON, Oct 24 Reuters Sentiment among British manufacturing companies fell at the fastest pace in two years ahead of finance minister Rachel Reeves39; first budget next week, a survey showed on Thursday.

The Confederation of British Industry39;s measure of business sentiment dropped in the three months to October to 24 from 9 in the three months July.

Factories also reported easing cost pressures which rose at their slowest pace in four years.

Ben Jones, CBI39;s lead economist, said he expected the downturn in sentiment in the manufacturing sector to bottom out and Reeves39; budget speech on Oct. 30 was a chance to change the tone.

Manufacturers will be looking to the chancellor to deliver a confidenceboosting budget that supports business and greases the wheels of investment, Jones said.

While possible tax rises remain a concern, firms believe that clarity over future tax plans, measures to enhance productivity, and the countrys net zero trajectory can all help cement the path to longterm growth.

Reeves, who has warned that she will increase some taxes, will set out her plan for spending and taxes.

The CBI39;s monthly industrial orders balance fell to 27 in October from 35 in September, marginally above economists39; forecasts in a Reuters poll of 28.

A purchasing managers survey, published earlier on Thursday, also showed weakening sentiment among firms.

Reporting by Suban Abdulla Editing by William Schomberg

Source Reuters