The UK’s total order book balance declined to -45 in June 2026 from -41 in May, marking the weakest reading since September 2020 and undershooting market expectations of -35. Output volumes fell across most sectors, with food, drink & tobacco, mechanical engineering, paper, printing & media, and metal products among the hardest hit. Export demand also softened, with export order books slipping to -33 and remaining well below their long‑term averages. Companies continue to report both domestic and overseas orders as below “normal” levels, underscoring fragile global demand conditions.
Despite the downturn, selling price expectations remain elevated at 22, albeit down sharply from 38 in May. CBI economist Cameron Martin noted that manufacturers are grappling with weak demand and high input costs, while uncertainty continues to hold back investment. He added that stabilising energy markets, supported in part by progress in US‑Iran negotiations, could eventually help ease cost pressures, but cautioned that any recovery is likely to be gradual.
