UK manufacturing PMI rises to 17-month high, new orders register largest increase in four years

A closely watched indicator of the health of the UK manufacturing sector rose to its highest level since August 2024 in January, as the volume of new orders recorded the largest increase in nearly four years, further confirming signs of recovery in the industry. The final value of the manufacturing PMI in January rose to 51.8, higher than December's 50.6 and slightly above the preliminary figure of 51.6. The sub-index for new orders jumped from 50.2 to 53.2, the highest since February 2022, primarily driven by the first growth in export orders in four years. Rob Dobson, Director of Market Economics at S&P Global, said, "The UK manufacturing sector has started 2026 on a steady footing, showing encouraging resilience. Business confidence has also rebounded positively to its highest level since the autumn budget of 2024." Data also shows that manufacturing employment continues to decline, but at the smallest rate since the increase in employment taxes by Rishi Sunak in October 2024, while the cost of input for businesses saw the largest increase since August 2025.