CBI quarterly data showed orders matched the joint-lowest level since September 2020, as rising costs and weak demand squeezed margins, investment and jobs.
UK manufacturers’ total order book balance held at -45 in July 2026, matching the joint-lowest reading since September 2020 and missing market expectations of -40. The CBI’s quarterly survey indicated that rising costs and weak demand continued to pressure the sector, leaving companies to absorb the strain through tighter margins, lower investment and further job cuts. Cost pressures intensified in the three months to July, with unit costs increasing at the fastest pace since the three months to October 2022. Despite the deterioration in orders and costs, output expectations for the next three months improved slightly to -30 from -31 in June, suggesting sentiment on near-term production became marginally less negative.