Q2 2026 presents a broadly positive trading picture tempered by a notable decline in confidence. Order intake reached a net +17% and output volume +20%, continuing the recovery from Q1. Export orders moved firmly positive at +9%. Staffing improved to +9% and overtime strengthened to +16%. Training investment held positive at +21% and capacity utilisation recovered to +8%. However, optimism fell to a net −7%, a 12-point deterioration from Q1's +5%, with 35% of respondents reporting reduced confidence. Capital investment remained broadly neutral at 0%. Looking forward, price pressures dominate — UK prices are forecast at a net +52% and export prices at +48%, the strongest signals across all indices, pointing to continued cost-push pressures entering Q3.