FX.co ★ UK Factory Conditions Improve in July

The S&P Global Flash UK Manufacturing PMI rose to 52.8 in July 2026 from 52.5 in June, exceeding market expectations of 52. Production increased for a fourth consecutive month, with the pace of growth reaching its fastest since September 2024. This acceleration was driven by generally improving market conditions and a resulting pickup in new orders.

Manufacturers also reported a rise in backlogs of work for the first time since April 2022, alongside a slight increase in employment. At the same time, input cost pressures eased. Some firms cited lower prices for raw materials and reduced oil-related surcharges, particularly for plastics.

Supplier performance showed the mildest deterioration since February, even though many companies continued to experience longer international shipping times.