By Benjamin Chiou
Date: Thursday 20 Aug 2026
(Sharecast News) - UK manufacturing order books improved sharply in August, helped by a recovery in overseas demand, according to the latest survey from the Confederation of British Industry.
The CBI said total order books were reported as below normal to the smallest extent since November 2024, with the net balance - those reporting an increase minus those reporting a decrease - rising to -25% from -45% in July.
Export order books meanwhile returned to "normal", stabilising for the first time since June 2022, following a net balance of -33% the month before.
Output volumes continued to fall in the three months to August, but at a slower pace, with the balance improving to -17% from -24%. Manufacturers expect output to decline again over the three months to November, although the expected balance of -7% was the least negative since the beginning of the Iran War.
Price pressures remained elevated, however, with expectations for average selling price inflation rising to +22% from +11% in July, well above the long-run average of +8%.
Cameron Martin, CBI senior economist, said: "Stronger global demand is providing some welcome relief for manufacturers, with export order books improving sharply and lifting overall orders."
However, he cautioned that it was "too soon to know whether this marks the beginning of a sustained shift in conditions", given ongoing cost pressures.
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