UK factory order books strengthen as output decline eases.

Source: Sharecast

The CBI’s Industrial Trends Survey showed total order books at a weighted balance of -9%, up from -25% in August. While still below what is considered 'normal', this was the strongest reading since July 2023. The figure was also better than the long-run average of -14%.

Output volumes fell only marginally in the three months to September, with the balance improving to -4% from -17% in the quarter to August, marking the slowest decline since the three months to July 2025.

Manufacturers expect output to fall again in the three months to December, although only modestly, with a balance of -6%.

Export order books weakened to -9% from 0% in August but remained well above their long-run average of -19%.

Meanwhile, expectations for selling price inflation eased considerably, with the balance falling to +12% from +22%, only slightly above the long-run average of +8%.

Cameron Martin, CBI senior economist, said: “There are growing signs that conditions are stabilising for manufacturers, with a marked improvement in order books for the second consecutive month – taking them to their strongest in more than three years.”

However, he added that it was “still too early to call this a sustained recovery”, with manufacturers continuing to face high supply chain, energy and employment costs.