https://www.cmegroup.com/content/dam/cmegroup/images/common/default/article-940x600.jpg
GB: CBI Industrial Trends
| Actual | Previous | |
| Orders Balance | -25% | -45% |
Highlights
UK manufacturing showed tentative stabilisation in August 2026, as improving order books offered relief after several months of deterioration. The total order book balance rose from minus 45 percent to minus 25 percent, although it remained below its historical average of minus 14 percent. Export orders provided the strongest signal, recovering to normal levels for the first time since June 2022, suggesting that overseas demand is supporting the sector.
However, stronger orders have yet to translate into expanding production. Output continued to decline, with the balance improving from minus 24 percent to minus 17 percent, while contraction across 12 of 17 subsectors indicates persistent weakness. The expected output balance of minus 7 percent points towards easing contraction rather than renewed growth.
Meanwhile, selling-price expectations doubled to 22 percent, substantially above the historical average of 8 percent. This suggests continuing cost pressures that could squeeze margins or raise customer prices, potentially limiting recovery. Adequate finished-goods stocks provide some capacity to meet improving demand before production increases. The survey therefore signals cautious improvement, led by exports, but sustained recovery will require stronger orders to translate into production alongside greater cost stability.