UK Manufacturing Growth Picks Up to Highest Since May

The S&P Global UK Manufacturing PMI rose to 52.8 in October 2026 from 51.9 in September, matching forecasts and reaching its highest level since May. Output expanded for a seventh consecutive month and at its fastest pace in just over two years, supported by stronger new business and improved market conditions. New orders also grew at their fastest pace since early in the first quarter. However, stronger activity failed to translate into job creation, with employment unchanged after six consecutive months of growth. Meanwhile, supply chains remained under pressure, as input cost inflation accelerated and vendor lead times lengthened to one of their greatest extents in four years. Output prices rose at their fastest pace in three months. Business confidence climbed to an eight-month high, supported by planned expansions, market recovery prospects, investment in capital equipment and AI, new product launches and stronger order pipelines.

The S&P Global UK Manufacturing PMI rose to 52.8 in October 2026, up from 51.9 in September and above market expectations of 51.7, according to the preliminary estimate. The reading signaled the strongest improvement in manufacturing business conditions since May, supported by the fastest growth in output in just over two years and a solid increase in new orders. However, employment declined slightly during the month. Meanwhile, supplier delivery times lengthened at the fastest pace since May, reflecting shipping delays and supply chain disruptions linked to the Middle East conflict, as well as global shortages of semiconductors and electronic components. Inventories continued to decline, with purchasing stocks falling for a fifth consecutive month. Input costs also rose sharply due to higher energy, raw material and transportation prices. Business confidence improved slightly, supported by hopes for AI investment and defense sector projects to boost future growth.

The S&P Global UK Manufacturing PMI rose to 51.9 in September 2026, up from 51.7 in August and broadly in line with the preliminary estimate and market expectations. The reading signaled an expansion in manufacturing activity for the 11th consecutive month, although the pace of growth eased slightly toward the end of the third quarter. Firms continued to increase output in response to rising new orders, with new work expanding across both domestic and export markets. The volume of new business increased for the 10th consecutive month. Manufacturers maintained a positive outlook, with nearly half expecting output to increase over the coming year. Optimism was supported by planned company expansions, new product launches, an anticipated improvement in market confidence and investment projects. However, geopolitical uncertainty remained a drag, with under pressure supply chains and lengthening delivery times, pushing up purchasing prices and transport costs linked to higher diesel prices.