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2025-12-17 19:16:21
[UK Industrial Orders Decline Slows, But Weak Demand and Cost Pressures Remain Major Headwinds] ⑴ Data from the Confederation of British Industry (CBI) shows that the industrial orders balance rose to -32 in December, up from -37 in November, marking the best performance since September and a narrowing of the decline. ⑵ The decline in export orders also hit its smallest since July, while business expectations for output over the next three months rose to their highest level since September. ⑶ Analysts pointed out that uncertainty ahead of the November 26 budget announcement had dampened activity, and with the dissipation of this factor, business expectations for 2026 have improved slightly. ⑷ Nevertheless, the current orders balance remains well below the long-term average of -14, indicating that the industrial sector as a whole is still in contraction territory. ⑸ Major headwinds to growth remain, including persistently weak demand, high energy and labor costs squeezing profit margins, and continued uncertainty surrounding key policies and the global environment that continues to undermine confidence.
