Finance
UK Factory Orders Stabilise, Cost Risks Seen From War, Cbi Say
Published by Global Banking & Finance Review®
Posted on March 20, 2026
2 min readLast updated: March 20, 2026
Quick Summary
UK factory orders remained weak in March, with the CBI’s order book balance at –27, just marginally improved from –28 in February; while price pressure has eased to +12 amid cost risks tied to the Middle East conflict and volatile energy markets.
UK Factory Orders Steady in March as Energy Cost Risks Persist, Says CBI Survey
CBI Survey Highlights and Market Context
Factory Orders and Price Pressures
LONDON, March 20 (Reuters) - British factory orders contracted again this month and price pressures have eased for now pending clarity on the duration of the war in the Middle East, according to a Confederation of British Industry survey published on Friday.
The CBI's monthly order book balance stood at -27 in March, little changed from -28 in February. The index level remains well below its long-run average of -14.
Output Expectations
The survey's measure of expectations for output in the next three months improved to -3 from -12.
Price Expectations
The survey's gauge of expected prices eased to +12 from +26 in February and +29 in January which was its highest reading since February 2023 when Britain was suffering from an energy price shock caused by Russia's invasion of Ukraine.
Industry Challenges and Risks
Manufacturing Conditions
Cameron Martin, CBI senior economist, said conditions remained challenging for manufacturers and the orders pipeline was weak by historical standards.
Energy Costs and Supply Chain Disruptions
"The conflict in the Middle East is pushing up energy costs and risks further disrupting supply chains, adding to the cost pressures already facing manufacturers," Martin said.
Survey Details
The survey of 279 manufacturers was conducted between February 25 and March 13, covering the period since the start of the U.S.-Israeli war on Iran which began on February 28.
(Writing by William Schomberg, editing by Andy Bruce)
Key Takeaways
- •March order book balance stable at –27 vs –28 in February, well below long‑run average of –14, indicating persistent contraction (Reuters; CBI)
- •Three‑month output expectations improved to –3 from –12, suggesting slightly less pessimism about near‑term production (Reuters)
- •Expected selling‑price gauge dropped sharply to +12 from +26 in February and +29 in January, easing inflation pressure but risks remain amid Middle East war‑fuelled energy volatility (Reuters; energy markets data)
Frequently Asked Questions about UK factory orders stabilise, cost risks seen from war, CBI say
1What did the CBI survey reveal about UK factory orders in March?
The CBI survey showed that UK factory orders remained weak in March, with little change from February and orders well below historic averages.
2How has the Middle East conflict affected British manufacturers?
The conflict has pushed up energy costs and increased the risk of disruptions to supply chains, adding to cost pressures on UK manufacturers.
3What do manufacturers expect for output in the coming months?
Expectations for output in the next three months have improved to -3 from -12, according to the CBI survey.
4How have price pressures changed recently for UK manufacturers?
Price expectations have eased, with the gauge falling to +12 in March from +26 in February and +29 in January.
5How many manufacturers participated in the recent CBI survey?
The CBI survey included responses from 279 manufacturers.
