British manufacturing continues to face low orders and upward price pressure, says CBI

"The CBI industrial trends survey found that manufacturers' orders for the month were below average in February, while most firms expect to raise their prices and for output to decline over the next three months. The survey compiled by the Confederation of British Industry adds to a mixed picture for the UK economy since the start of the year. Households are feeling dismal about their finances, while companies have been cutting staff amid rising cost pressures."

"The CBI survey said the monthly order book balance for manufacturers stood at -28 in February, up slightly from -30 in January but well below the average of -14. Cameron Martin, a senior economist at the CBI, said: Many firms continue to report customers holding back amid low confidence and elevated cost pressures. The CBI survey asks manufacturing firms to state whether conditions are better, worse or the same on a variety of subjects, before taking a net position for responses."

"Factory output also fell over the three months to February, to a balance of -14, although this was an improvement from -25 in January. Manufacturers expect their output to decline at a broadly similar pace over the next three months. The survey's gauge of expected prices over the next three months stood at +26, having risen to +29 in January, the highest reading since February 2023 when Britain was suffering an energy price shock after Russia's invasion of Ukraine."

British manufacturing orders remained below average in February, with the monthly order book balance at -28, slightly up from -30 in January but well below the -14 average. Factory output fell to a balance of -14 for the three months to February, an improvement from -25, while manufacturers expect output to decline at a similar pace over the next three months. Most firms expect to raise prices, with the expected-prices gauge at +26 after a January peak of +29. Households report weak finances and companies have cut staff amid rising cost pressures. Manufacturing accounts for about 9% of the economy and is a stated priority for government policy.

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