FX.co ★ UK Manufacturing Sector Shows Signs of Improvement Despite Continued Contraction in October

The UK's manufacturing sector saw a notable, albeit modest, improvement in October, with production figures indicating a less severe contraction compared to the previous month. According to the latest data updated on December 12, 2025, manufacturing production declined by 0.8% year-over-year, a marked improvement from the -2.2% recorded in September.

This improvement, while indicative of an easing downturn, confirms the sector's ongoing struggle against inflationary pressures and global economic uncertainties. The September figure represented a more stringent contraction when the data was compared to the same month in the previous year, underscoring the challenges manufacturers faced in maintaining growth momentum.

The October adjustment offers a glimmer of hope, suggesting that the sector might be on a slow path to recovery. Economists will be observing subsequent months carefully to assess whether this slowdown in decline could eventually transition into positive growth, providing the manufacturing sector a much-needed reprieve amid a challenging economic landscape.