UK manufacturing growth accelerates as exports rise for first time in four years

The S&P Global UK manufacturing PMI rose to 51.8 in January from 50.6 in December, and new export orders increased for the first time in four years amid higher sales to the US, China and other markets.

UK manufacturing activity picked up in January, with the S&P Global UK manufacturing PMI rising to 51.8 from 50.6 in December. The reading was the highest since August 2024 and reflected stronger export demand, including from the US and China. Manufacturing output grew for the fourth month in a row as some firms restocked and the domestic market remained broadly stable. Growth was concentrated among larger manufacturers while small and medium-sized businesses saw output decline for a third consecutive month. Key details: - S&P Global UK manufacturing PMI was 51.8 in January, up from 50.6 in December. - New export orders rose for the first time in four years, with higher sales to Europe, the US, China and several emerging markets. - Manufacturing output increased for the fourth consecutive month, but SMEs reported falling output for the third month running. - Business confidence rose to its highest level since before the 2024 autumn budget, according to S&P Global comments. - Staffing levels were reduced for the 15th month in a row, though the rate of job cutting slowed; cost pressures are rising due to higher minimum wage, employer national insurance contributions and commodity costs. Summary: January's PMI points to a modest expansion in UK manufacturing supported by renewed export demand. The improvement was mainly among larger firms while SMEs continued to contract. Business confidence has strengthened and the pace of job cuts eased, even as cost pressures increased. Undetermined at this time.