UK Manufacturing Activity Hits Five-Month High in October

UK manufacturing activity strengthened in October 2026, with the S&P Global PMI Manufacturing index rising to 52.8. This figure represents a five-month high, with production expanding at its fastest pace in 25 months. Growth was primarily driven by increased demand for investment, intermediate, and consumer goods.

New orders grew at the fastest rate since July, while export sales increased for the tenth consecutive month. Manufacturers reported notable growth in sales to the United States, the European Union, and mainland China. Business confidence also reached an eight-month high, supported by expectations of increased spending on AI-related infrastructure.

Despite the growth in output, employment remained unchanged after six months of expansion as firms paused hiring to manage rising costs. Input cost inflation reached one of its highest levels in four years, while port congestion and shipping disruptions significantly lengthened supplier delivery times. The data does not reflect the impact of the October 28 Autumn Budget.