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.

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