FX.co ★ UK Manufacturing Sector Nears Stabilization

The S&P Global UK Manufacturing PMI increased to 49.7 in October 2025, improving from 46.2 in September and slightly surpassing the preliminary figure of 49.6. This represents the highest point in a year and suggests near stabilization in the sector, marking the first production increase in 12 months. This growth was bolstered by the clearing of backlogs, restocking activities, and the resumption of operations at Jaguar Land Rover after a cyber-attack. Output witnessed growth in both the consumer goods and intermediate goods sectors, although the decline in investment goods production occurred at a reduced rate. Despite this, both new orders and export levels continued to decrease due to weak demand from regions including the US, EU, Asia, and the Middle East. Employment fell for the twelfth consecutive month, albeit at a slower rate, as businesses implemented cost-cutting measures and halted hiring. Input cost inflation reached its lowest point for the year, while selling prices increased modestly. Business optimism reached an eight-month high; however, it remained below the long-term average due to ongoing fiscal and geopolitical uncertainties.