UK Manufacturing Soars, Exports Jump, Output Hits 17-Month High

UK manufacturing started 2026 on a strong note, with output, new orders, and exports all rising. The S&P Global UK Manufacturing PMI jumped to 51.8 in January, a 17-month high and up from 50.6 in December, marking growth for the third month in a row. Large manufacturers led expansion in consumer and investment goods, while SMEs saw production decline for a third straight month. Export orders surged for the first time in four years, driven by Europe, the U.S., China, and emerging markets. Business confidence soared to the highest level since before the 2024 Autumn budget, with 58% of firms expecting output growth over the next 12 months. Job losses slowed, supplier lead times remained stretched, and input costs including energy, metals, and freight rose, pushing selling prices higher for the second consecutive month.