British manufacturing remains under strain, with order books well below average and price pressures continuing to weigh on firms, according to a closely monitored industry survey. The latest industrial trends survey from the Confederation of British Industry (CBI) found that manufacturers’ orders were below normal levels in February. A majority of firms also said they expected to raise prices and reduce output over the next three months. The findings add to a mixed picture for the UK economy at the start of the year. While some business surveys have indicated a rebound in corporate optimism following the easing of uncertainty around the government’s autumn Budget, households remain pessimistic about their finances and companies have continued to cut staff amid mounting cost pressures. The CBI reported that its monthly order book balance stood at -28 in February, a slight improvement from -30 in January but still well below the long-run average of -14. Cameron Martin, senior economist at the CBI, said many firms continued to report that customers were holding back due to weak confidence and elevated costs. The survey asks manufacturers whether conditions are better, worse or unchanged across a range of measures, and then calculates a net balance of responses. Factory output declined in the three months to February, with the balance at -14 — an improvement from -25 in January. However, manufacturers expect output to fall at a broadly similar pace in the coming quarter. Price expectations remain elevated. The survey’s gauge of expected prices over the next three months registered +26, slightly below January’s +29 reading, which was the highest since February 2023 when energy prices surged following Russia’s invasion of Ukraine. Manufacturing accounts for around 9 per cent of the UK economy. The Labour government has identified removing barriers to expansion in the sector as a key priority, arguing that it can play a significant role in boosting long-term growth.