CBI: UK Manufacturing Still Under Pressure Despite Modest Output Gains

London — UK manufacturing continued to struggle in the early months of 2026, with weak new orders and persistent price pressure reported by firms across the sector, according to the latest Confederation of British Industry Industrial Trends Survey.

The monthly order book balance for manufacturers stood at ‑28 in February, an improvement from ‑30 in January but well below the long‑run average of ‑14, the survey showed. Export order books were also below “normal” levels at ‑26, up slightly from ‑30 in January.

Manufacturing output volumes declined over the three months to February, although the pace of contraction slowed compared with the first month of the year. The balance for output volumes moved to ‑14 from ‑25 in January, indicating some moderation in the rate of decline.

Despite this moderation, the survey data reflect a sector that remains under significant strain. Weak demand conditions have contributed to continued subdued levels of orders, suggesting that both domestic and export markets remain cautious. A CBI senior economist noted that many firms reported customers holding back due to low confidence in economic conditions and elevated cost pressures.

Price expectations in the manufacturing sector remained elevated. A net +26 percent of firms reported that they expected to raise average selling prices in the three months through February, down slightly from +29 percent in January but well above the long‑run average of +8 percent.

Manufacturing accounts for approximately 9 percent of UK economic output and is seen as a key component of broader industrial performance. Persistent weakness in order books and ongoing cost pressures highlight the challenges facing producers as they navigate global economic uncertainty and domestic cost factors, including energy expenses and financing costs.

In addition to weak demand, manufacturers have been contending with broader cost inflation and elevated operating expenses. Survey respondents referenced continued pressure from input costs, which firms are, to some extent, passing through to selling prices.

The CBI’s latest figures come amid a mixed UK economic picture, with other sectors showing varying degrees of resilience or contraction. Policy makers and industry groups continue to monitor manufacturing performance as part of broader efforts to strengthen economic growth and business confidence.

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