UK Manufacturing PMI Revised Higher in May, Still Points to Tough Operating Conditions

The S&P Global UK Manufacturing PMI rose to 53.9 in May 2026 compared with initial estimates and April’s 53.7, marking the strongest expansion since May 2022. Output grew at a three-month high, led by intermediate and investment goods, while new orders rose for a sixth straight month on stronger domestic and export demand. However, momentum showed signs of fragility as firms reported front-loading of orders amid concerns over future price rises and supply disruptions. Supply chains remained under pressure, with vendor delivery times lengthening sharply due to shipping delays and geopolitical tensions affecting key routes. Purchasing increased for a second month, lifting input stocks at the fastest pace since July 2022. Input cost inflation climbed to a near four-year high, driven by higher energy, metals, chemicals, alongside tariffs, taxes, and labour costs. Selling prices rose at the quickest rate since mid-2022. Looking ahead, business confidence improved to a three-month high.

The S&P Global UK Manufacturing PMI held steady at 53.7 in May 2026, unchanged from April and well above market expectations of 53, according to preliminary data. The reading matched the highest level since May 2022, with production growth accelerating to a three-month high amid sustained demand growth. Manufacturers reported increased activity from client pre-purchasing and stock-building, as well as elevated demand from data center rollouts. However, concerns about rising political and economic uncertainty persisted. Employment continued to decline, while inflationary pressures remained elevated and supply chains faced further disruptions from international shipping delays. The rate of stock accumulation hit its fastest pace since July 2022, with finished goods inventories also rising at an accelerated rate due to a build-up of pre-production stocks amid concerns over input costs and raw material availability. Still, business confidence improved slightly.

The S&P Global UK Manufacturing PMI climbed to 53.7 in April 2026 from 51 in the prior month, slightly above the preliminary estimate of 53.6. This marked the highest reading since May 2022, as output expanded for the sixth time in seven months, supported by stronger new orders, backlog clearing, and a modest build-up in finished goods inventories. New orders grew at one of the fastest rates in four years, driven by both domestic and export demand. However, supply chain strains intensified, largely due to ongoing disruption linked to the closure of Strait of Hormuz amid prolonged Middle East conflict. As a result, input prices rose at its fastest rate since June 2022, marking one of the steepest increases recorded outside the post-pandemic spike. Finally, business optimism hit a one-year low as manufacturers grew increasingly concerned about the impact of the Middle East conflict on global growth, as well as geopolitical instability and government policy.