FX.co ★ UK Factory Orders Improve Sharply

The Confederation of British Industry’s monthly industrial order-book balance rose sharply to -25 in August 2026 from -45 in July, delivering the strongest monthly improvement in more than five years and beating forecasts of -40. While the figure remains in negative territory—still signalling falling orders—the rebound points to increased resilience in the UK manufacturing sector, even amid the continuing economic fallout from the Iran conflict.

Expectations for factory output also strengthened, and export orders turned positive for the first time since June 2022. Nonetheless, manufacturers continue to grapple with pronounced cost pressures. The survey showed expectations for selling prices climbing to +22 in August from +11 in July, a shift likely driven by the recent recovery in crude oil prices and renewed concerns over higher input costs.