UK manufacturing order books show improvement in August

The CBI Industrial Trends Survey for August 2026 indicates an improvement in manufacturing order books following a period of sharp decline between April and July. Total order books were reported as below “normal” to the least extent since November 2024, with export order books returning to “normal” levels for the first time since June 2022.

While output volumes fell during the three months to August, the pace of decline slowed compared to the previous quarter. Manufacturers expressed expectations that the decline in output would slow further through November. Selling price expectations also strengthened in August, remaining above historical norms.

Despite the uptick in orders, manufacturers face significant challenges regarding profitability. Rising input costs, as noted by Office for National Statistics data, are outpacing factory-gate price increases. This divergence creates a margin squeeze, as companies struggle to pass higher raw material, energy, and transportation costs on to consumers due to competitive pressures and contractual obligations.