UK manufacturing order books fall to six-year low in June - CBI

23rd Jun 2026 11:46

(Sharecast News) - UK manufacturing order books fell to a six-year low in June, according to a survey released on Tuesday by the Confederation of British Industry.

The CBI's monthly order books balance declined to -45 this month from -41 in May , with order books reported as "below normal" to the greatest extent since September 2020.

A balance is the weighted percentage of companies reporting an increase minus those reporting a drop.

The output volumes balance in three months to June fell to -33 from -23 in May, leaving it weaker than at any time since the quarter to August 2020.

The CBI said output fell in 12 out of the 17 sub-sectors, driven by the food, drink & tobacco, mechanical engineering, paper, printing & media and metal products sub-sectors.

CBI senior economist Cameron Martin said: "Manufacturers are facing an increasingly difficult trading environment, with order books now at their weakest since 2020 and output continuing to fall. While selling price expectations have eased from their peak in May, they remain elevated, highlighting the cost pressures still facing the sector.

"The agreement between Iran and the US to reopen the Strait of Hormuz will hopefully alleviate some of the challenges that have weighed on manufacturers in recent months. But it will take time for energy prices and supply chains to normalise even under the best of circumstances, while the potential for further instability is clear. This leaves firms navigating uncertainty on both global and domestic fronts, at a time when weak demand and fragile confidence are already weighing on growth prospects.

"Manufacturers have responded to recent instability by prioritising resilience over expansion, increasing inventories, diversifying suppliers and investing in operational efficiency. While these have helped build resilience, they have also diverted resources away from the investment needed to drive growth and productivity."

Martin said political uncertainty risks holding back investment at a time when manufacturers are already grappling with high costs and weak demand.

"The Prime Minister's resignation should not distract from the urgent need to go further in reducing industrial energy costs and removing barriers to trade with our closest trading partners in the EU. Lowering the cost of doing business must remain central to the government's ambitions, helping manufacturers to invest and grow," he said.

The CBI surveyed 288 manufacturing firms between 26 May and 12 June.