Finance
Drop in UK industrial orders eases but price expectations soar, CBI says
Published by Global Banking and Finance Review
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
UK industrial orders decline slightly in January, with price expectations reaching a near three-year high, says CBI.
Jan 21 (Reuters) - British industrial orders fell again in January but by the smallest amount since September, while expectations for prices shot to an almost three-year high, the Confederation of British Industry said on Wednesday.
The CBI's monthly order book balance rose to -30 in January from -32 in December. The index level remains well below its long-run average of -14.
The survey's gauge of expected prices shot up to +29, the highest reading since February 2023 when Britain was still reeling from an energy price shock sparked by Russia's invasion of Ukraine.
Ben Jones, senior lead economist at the CBI, said conditions for manufacturers remained "extremely tough".
"At the same time, cost pressures – from rising wages, high energy prices and taxes – are squeezing margins and weighing on competitiveness, pushing firms to plan price rises even as demand remains subdued," Jones said.
A quarterly question in the survey showed manufacturers became a little more optimistic in the three months to January, with the business situation gauge rising to its highest since July 2024.
(Reporting by Andy Bruce; editing by Suban Abdulla)
Industrial orders refer to the requests made by manufacturers for goods and services that are necessary for production. These orders are indicators of future manufacturing activity.
Business sentiment reflects the overall attitude of businesses regarding economic conditions, which can affect investment decisions and operational strategies.
Competitiveness in manufacturing refers to the ability of a company to produce goods efficiently while maintaining quality, which allows it to compete effectively in the market.
The Confederation of British Industry (CBI) is a UK business organization that represents the interests of businesses and provides insights on economic trends and policies.
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