UK manufacturing downturn eases in December - CBI

17th Dec 2025 11:49

(Sharecast News) - The downturn in the manufacturing sector eased in December, according to the latest Industrial Trends survey released on Wednesday by the Confederation of British Industry.

Output volumes fell in the period but at a slower pace than in November, with a net balance of -21 in December, up from -30. A balance is the weighted percentage of firms reporting an increase and those reporting a decrease.

The CBI said output declined in 15 of the 17 sub-sectors, with the decline driven by the chemicals, metal products, and mechanical engineering sub-sectors.

Total order books were reported as "below normal" in December but improved from the previous month, with a balance of -32%, up from -37%,

Export order books were also reported as "below normal", albeit to a slightly lesser extent than in November, with a balance of -27%, versus -31%.

Expectations for average selling price inflation improved markedly, with a balance of +19%, up from +7% in November.

CBI lead economist Ben Jones said: "Manufacturing output is still falling, but the pace of decline has eased. Activity was clearly held back by uncertainty ahead of the Budget, and with that now out of the way firms can look to 2026 with a little more certainty.

"Significant headwinds remain nonetheless, with demand still soft, high energy, labour and regulatory costs squeezing margins, and uncertainty around key policies and global conditions continuing to weigh on confidence.

"To build momentum through 2026, the government must take action to lower the cost of doing business. This includes expediting and broadening support to tackle punitive industrial energy costs, collaborating to agree balanced solutions on the Employment Rights Bill through secondary legislation, and overhauling regulatory barriers to unlock investment and innovation."