British Manufacturers Face Mounting Cost Pressures as Industrial Orders Remain Weak
British industrial orders remained weak in January as firms faced significant cost pressures. Price expectations reached their highest level since early 2023.
Insights:
The Confederation of British Industry reported on Wednesday, January 21, 2026, that manufacturers in the United Kingdom 
GBare grappling with a difficult economic environment characterized by weak demand and surging costs. According to the latest survey, the CBI monthly order book balance rose slightly to -30 in January from -32 in December. Despite this marginal improvement, the index level remains well below its long-run average of -14, indicating persistent stagnation in the sector.
GBare grappling with a difficult economic environment characterized by weak demand and surging costs. According to the latest survey, the CBI monthly order book balance rose slightly to -30 in January from -32 in December. Despite this marginal improvement, the index level remains well below its long-run average of -14, indicating persistent stagnation in the sector.At the same time, the price expectations gauge for the manufacturing sector in the United Kingdomshot up to +29 in January. This represents the highest reading since February 2023, a period when the price spike was sparked by Russia's invasion of Ukraine. This surge suggests that firms are planning price rises even as demand remains subdued, reflecting a significant squeeze on profit margins and pricing strategies.
