FX.co ★ UK Manufacturing Output Rebounds Less than Expected

UK manufacturing output inched up 0.1% month-on-month in January 2026, recovering from a 0.5% decline in December but undershooting market expectations of a 0.2% increase. The modest rebound was supported by growth in five of the thirteen manufacturing subsectors. The strongest positive contributions came from transport equipment (up 4.0% vs down 1.1% previously), other manufacturing and repair (up 4.5% vs down 2.0%), and food products, beverages and tobacco (up 2.2% vs down 1.4%).

Output also picked up in chemicals and chemical products (up 1.5% vs down 5.0%) and in basic metals and metal products (up 0.5% vs down 0.8%).

By contrast, the main drags on growth came from machinery and equipment (down 7.7% vs up 2.6%), electrical equipment (down 9.0% vs up 4.9%), and computer, electronic and optical products (down 2.8% vs up 5.6%).

On an annual basis, manufacturing output grew 1.3% in January, accelerating from a 0.5% increase in the previous month but coming in below market forecasts of a 1.5% rise.