Source: Sharecast
The CBI's balance for manufacturing new orders fell to -33 from -30 in July.
Meanwhile, the gauge for the volume of output expected in the next three months declined to -13 in August from -6 the month before.
Ben Jones, lead economist at the CBI, said: "Manufacturers report that rising costs are squeezing margins and leaving customers more cautious, which in turn is hitting orders and weighing on output. With weak demand compounded by trade frictions and policy uncertainty, the outlook for UK manufacturers remains challenging.
"As firms continue to cite, they are contending with a range of cost pressures from high energy costs to the additional burden from last year's Autumn Budget increase in employer NICs.
"Against this backdrop, the upcoming Autumn Budget is a pivotal moment to shore up business sentiment. The government must provide business tax certainty and further Growth and Skills Levy flexibility, accelerate industrial and infrastructure strategy implementation, and broaden support to tackle uncompetitive energy prices.
"The CBI stands ready to partner with the government to co-design the policies that will build a truly competitive, innovative, and prosperous UK economy."