Manufacturing order books improved for the second consecutive month according to the Confederation of British Industry’s latest Industrial Trends Survey (ITS).

Total order books were reported as below “normal” to the least extent since July 2023, with both total and export order books standing above their long-run averages.

Output volumes fell very slightly in the three months to September, at the slowest pace since the three months to July 2025. Manufacturers expect output to fall only marginally in the three months to December.

Selling price expectations eased in September and now stand only slightly above the long-run average. Stock adequacy fell compared with August, with the level of inventories seen as just about adequate.

The survey, based on the responses of 234 manufacturers, found output volumes fell marginally in the three months to September, and at the slowest pace since the quarter to July 2025. Manufacturers expect output volumes to fall again in the three months to December, at a slow pace.

CBI senior economist Cameron Martin said: “There are growing signs that conditions are stabilising for manufacturers, with a marked improvement in order books for the second consecutive month – taking them to their strongest in more than three years. Output is also now falling only marginally and selling price expectations have eased considerably from the highs seen following the outbreak of conflict in the Middle East.

“While these are encouraging signs, it is still too early to call this a sustained recovery, with manufacturers continuing to face high supply chain, energy and employment costs.

“With the Budget fast approaching, government has an opportunity to build on these tentative signs of stabilisation by giving manufacturers the confidence to invest and grow. Action to remove legacy policy costs from all business electricity bills and raise the employer National Insurance Contribution secondary threshold would help turn this emerging resilience into stronger and more sustained growth.”