UK Manufacturing PMI Climbs to Highest Since 2024

The S&P Global UK Manufacturing PMI rose to 51.8 in January 2026, above the preliminary reading of 51.6 and up from 50.6 in December. The latest figure signals the fastest pace of expansion since August 2024. Manufacturing output increased for a fourth consecutive month, matching the joint-quickest growth rate since September 2024, supported by stronger export demand, broadly stable domestic conditions, and a lift from customer restocking. By company size, the upturn was largely driven by large manufacturers, while SMEs reported a third straight month of falling production. Encouragingly, new orders rose at the fastest pace in nearly four years, and employment continued to decline, though at a slower rate. On the inflation front, input costs and selling prices increased more quickly, reflecting higher raw material costs and suppliers passing through price rises. Meanwhile, business confidence strengthened, reaching its highest level since before the 2024 Autumn Budget.

The S&P Global UK Manufacturing PMI rose to 51.6 in January 2026, up from 50.6 in December and above market expectations of 50.6, according to a preliminary estimate. The latest reading marked the strongest improvement in manufacturing business conditions since August 2024, driven by the largest increase in production since October and the first rise in new export orders in four years. Meanwhile, employment continued to decline. On the price front, both input costs and factory gate charges continued to rise. Business confidence strengthened notably despite ongoing geopolitical uncertainties, with firms citing planned investment, a recovery in sales pipelines, improving broader economic conditions, and lower borrowing costs as key drivers.

The S&P Global UK Manufacturing PMI rose to 50.6 in December from 50.2 in the previous month, revised downward from the preliminary estimate of 51.2, but remaining ahead of the initial market expectations of 50.4. It was a second consecutive expansion in the UK's factory activity gauge following a full year of contractionary readings. Output rose for a third straight month with broad increases observed in consumer, intermediate, and investment goods sectors, supported by new work intakes, which expanded for the first time in 15 months. Still, manufacturing employment decreased for the fourteenth month running with companies continuing to cite higher labor costs from the UK's new Insurance contributions, although uncertainty from the Autumn Budget decreased and drove the decline in employment levels to its softest in the current trend. On the price front, both input and output inflation rose in the period on higher wage costs and soaring wholesale prices of metals for electronics.