FX.co ★ UK Manufacturing PMI Climbs to Highest Since 2024

The S&P Global UK Manufacturing PMI climbed to 51.8 in January 2026, surpassing its preliminary estimate of 51.6 and improving from December's figure of 50.6. This latest reading indicates the swiftest expansion pace since August 2024. Manufacturing output rose for the fourth month in a row, equaling the fastest growth rate recorded since September 2024. This growth was fueled by stronger export demand, stable domestic conditions, and a boost from customer restocking. The surge was mainly driven by large manufacturers, while small and medium-sized enterprises (SMEs) experienced a third consecutive month of production decline. Positively, new orders grew at the fastest rate in nearly four years, although the decline in employment continued, albeit at a more gradual pace. Regarding inflation, input costs and selling prices accelerated due to increased raw material costs and suppliers transferring these price hikes. In the meantime, business confidence improved significantly, reaching its highest point since prior to the Autumn Budget of 2024.