UK manufacturing expanded at its strongest pace since August 2024 in January, according to the latest S&P Global data, with new orders rising sharply and exports returning to growth for the first time in four years.
The S&P Global Purchasing Managers' Index for British manufacturing climbed to 51.8 in January from 50.6 in December. That final reading slightly exceeded the earlier provisional estimate of 51.6.
The new orders sub-index was a key driver of the improvement, jumping to 53.2 from 50.2. S&P Global noted this was the highest new orders reading since February 2022. The rise in orders was underpinned by the first increase in export orders in four years, with S&P Global citing stronger external demand from Europe, the United States, China and other emerging economies.
Rob Dobson, a director at S&P Global Market Intelligence, described the start to 2026 as solid for UK manufacturing, saying the sector showed "encouraging resilience in the face of rising geopolitical tensions."
The report also flagged a recovery in business confidence. According to Dobson, sentiment among manufacturers rose to its highest level since before the 2024 Autumn budget, adding to other signals of economic improvement following a sluggish end to 2025.
Taken together, the data point to a clearer upturn in activity within the manufacturing sector early in 2026. The stronger new orders reading and the return of export growth indicate demand drivers both at home and abroad played a role in the improvement, while the rise in confidence suggests firms are more optimistic about near-term prospects than they were late last year.
While the final PMI reading marginally outperformed the provisional estimate, the report underscores that the recovery remains in its early stages and is conditioned on continued demand from key trading partners.
What the figures show:
- Overall manufacturing PMI: 51.8 in January, up from 50.6 in December.
- Provisional estimate: 51.6 (earlier published figure).
- New orders: 53.2 in January, up from 50.2, highest since February 2022.
- Export orders: first increase in four years, reflecting demand from Europe, the United States, China and other emerging economies.