UK manufacturing output falls in January - CBI
By Michele Maatouk
Date: Wednesday 21 Jan 2026
(Sharecast News) - UK manufacturing output fell in the quarter to January, according to the latest Industrial Trends Survey from the Confederation of British Industry, and optimism remains weak.
Output volumes declined, with a net balance of -25, down from -21 in December. A balance is the weighted percentage of firms reporting an increase and those reporting a decrease.
The drop in output volumes was broad based, in 14 out of 17 sub-sectors, driven by declines in the food, drink & tobacco, metal products, mechanical engineering and chemicals sub-sectors.
The CBI also said that firms expect output to fall again in the three months to April.
Ben Jones, senior lead economist at the CBI, said: "Manufacturers are finding conditions extremely tough, with output and orders falling again. Many firms report seeing customers delay decisions, order only what they strictly need, or hold back from committing altogether, leaving order books thin and confidence fragile.
"At the same time, cost pressures - from rising wages, high energy prices and taxes - are squeezing margins and weighing on competitiveness, pushing firms to plan price rises even as demand remains subdued.
"The government must now focus on lowering the cost of doing business to unlock investment and growth. Recent pragmatism shown on areas such as day one rights is welcome, but manufacturers want to see the government expedite much needed energy costs support and deliver greater policy clarity more generally."
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