UK Manufacturing Growth Accelerates in January 2026
02.02.2026
The UK manufacturing sector saw stronger growth in January, driven in part by rising demand from the US and China, according to new survey data. Export sales climbed for the first time in four years, contributing to the positive momentum.
The S&P Global UK Manufacturing PMI (Purchasing Managers' Index) - closely watched by economists - recorded 51.8 last month, up from 50.6 in December. This marks the highest reading since August 2024 and exceeds earlier expectations for the sector.
A PMI reading above 50 signals expansion, while a score below 50 indicates contraction.
Manufacturing output increased for the fourth consecutive month, supported by stronger exports, steady domestic demand, and businesses restocking inventories.
Read our reaction below.
Manufacturing activity is finally moving at a pace deemed worthy of its optimism, taking advantage of the much needed stability in the policy environment since the Budget. Until recently, many businesses had paused investment due to cost uncertainty, though it is unfortunate that cost cutting measures are favouring job losses which will lead to a new headache for the Government.
“Make no mistake this will be one of the most expensive years ever to run a business in the UK. Manufacturers must still navigate the rising cost of labour, high energy prices and trade uncertainty whilst facing pressures to raise wages even in a loosening labour market. While certainty in the policy environment can improve demand conditions and aid business recovery, just so long as businesses are able to get on with their day to day there remains grounds for optimism.
"It remains imperative for Government to deliver a successful industrial strategy which can support output expansion and, whilst we know the intent is there, without material, bold and decisive action our ambitions for economic growth will not be realised.
