The UK’s total order book balance improved to -30 in January 2026, up from -32 in December and surpassing analysts’ forecasts of -33, according to the Confederation of British Industry (CBI). While the reading indicates that industrial orders are falling at their slowest pace since September, they remain well below the long-run average. Meanwhile, the gauge of expected prices surged to +29, the highest level since February 2023. Ben Jones, Senior Lead Economist at the CBI, commented: “Manufacturers are facing extremely tough conditions, with output and orders continuing to decline. Many firms report that customers are delaying decisions, ordering only essentials, or holding back altogether, leaving order books thin and confidence fragile. At the same time, rising costs—from wages, energy, and taxes—are squeezing margins and weighing on competitiveness, prompting firms to plan price increases even as demand remains subdued.”

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