Key facts
- UK factory orders balance improved to -25 in August from -45 in July.
- The 20-point increase is the largest improvement in over five years.
- Export orders turned positive for the first time since June 2022.
- Selling price expectations among manufacturers increased to +22 in August.
A survey by the Confederation of British Industry (CBI) revealed that British factory orders reached their highest level since November 2024 in August, indicating a potential resilience in the UK economy. The monthly order books balance increased to -25 from -45 in July, marking the most significant improvement in over five years and one of the largest single-month jumps on record.
This uptick in orders was attributed to stronger global demand, which also led to export orders moving into positive territory for the first time since June 2022. However, CBI Senior Economist Cameron Martin cautioned that it is too early to determine if this trend is sustainable. Manufacturers continue to face cost pressures, as evidenced by a rise in selling price expectations to +22 in August from +11 in July, likely influenced by recent increases in crude oil prices.
The survey also indicated an improvement in expectations for future output, suggesting a more optimistic outlook among manufacturers despite the persistent challenges.