UK Manufacturing Orders Fall at Slower Pace: CBI

The UK’s total order book balance rose to -28 in February 2026 from -30 in January, according to the Confederation of British Industry (CBI). Although the reading signals that industrial orders are declining at their slowest pace since September, levels remain historically subdued. Export order books were also reported as below “normal,” though slightly improved at -26 compared with -30 in January. In the three months to February, manufacturing output continued to fall but at a slower pace than in the three months to January (-14 vs -25). Expectations for average selling price inflation remained elevated at +26% in February, easing slightly from +29% in January but still well above the long-run average of +8%. CBI Senior Economist Cameron Martin said the downturn in manufacturing output had moderated in February following a difficult start to the year, though many firms continue to report customers holding back amid weak confidence and persistent cost pressures.

The UK’s total order book balance improved to -30 in January 2026, up from -32 in December and surpassing analysts’ forecasts of -33, according to the Confederation of British Industry (CBI). While the reading indicates that industrial orders are falling at their slowest pace since September, they remain well below the long-run average. Meanwhile, the gauge of expected prices surged to +29, the highest level since February 2023. Ben Jones, Senior Lead Economist at the CBI, commented: “Manufacturers are facing extremely tough conditions, with output and orders continuing to decline. Many firms report that customers are delaying decisions, ordering only essentials, or holding back altogether, leaving order books thin and confidence fragile. At the same time, rising costs—from wages, energy, and taxes—are squeezing margins and weighing on competitiveness, prompting firms to plan price increases even as demand remains subdued.”

The Confederation of British Industry (CBI) survey showed the UK’s total order book balance improved to a three-month high of -32 in December 2025 from -37 in November and better than analysts' estimates of -35. Still, the index remained well below the long-run average of -14. The survey revealed that export orders fell the least since July and output expectations for the next three months rose to their highest since September. "Activity was clearly held back by uncertainty ahead of the Budget, and with that now out of the way, firms can look to 2026 with a little more certainty," CBI economist Ben Jones said. "Significant headwinds remain nonetheless, with demand still soft, high energy, labour and regulatory costs squeezing margins, and uncertainty around key policies and global conditions continuing to weigh on confidence," he added.