UK manufacturing fell in early 2026 due to weak demand and high costs, despite slight improvement in output and orders.

UK manufacturing output and orders declined in the three months to February, with the output balance improving slightly to -14% from -25% in January, though firms still expect further drops. Order book balances rose to -28% from -30%, and export orders eased to -26%. Selling price expectations remained high at +26%. The CBI cited weak demand, low confidence, and ongoing cost pressures as key challenges, urging faster government action on energy costs and skills shortages.