UK Manufacturing Production Hits Fastest Growth in Two Years

UK manufacturing production increased in July 2026, marking the fourth consecutive month of growth and the fastest pace in nearly two years. According to an S&P Global survey, the purchasing managers’ index (PMI) reached 51.9, continuing a nine-month expansion period despite a slight decrease from June figures.

S&P Global Market Intelligence reports that growth was driven by new business from domestic and export clients across the US, Canada, the EU, China, India, and South Korea. This recovery follows a period of instability triggered by Donald Trump's 2025 liberation day tariffs and a cyberattack on Jaguar Land Rover that halted production.

While production is accelerating, employment growth has slowed toward stagnation due to ongoing uncertainty. Industry analysts highlight that while the sector remains resilient, a potential conflict in the Middle East poses a significant risk to oil and gas supplies, which could increase production costs.