UK Manufacturing Growth Accelerates to 18-Month High

The S&P Global UK Manufacturing PMI rose to 52.0 in February 2026 from 51.8, beating expectations of 51.5, according to a preliminary estimate. The reading signaled the strongest expansion since August 2024, with output increasing at the fastest pace in 17 months. New orders grew more quickly, supported by the sharpest rise in export demand in four-and-a-half years, with firms citing stronger sales to the US, Europe, and Asia. However, employment and backlogs of work continued to decline. On the pricing front, both input costs and output prices rose sharply. Business optimism improved to a one-and-a-half-year high, driven by expectations of stronger exports and international expansion.

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.