The UK’s Manufacturing Purchasing Managers’ Index (PMI) reached its highest level since August 2024 in January, driven primarily by a four-year peak in new orders reflecting the first improvement in exports in four years. According to the final data from JN10, the manufacturing PMI stood at 51.8 in January, up from 50.6 in December and slightly above the preliminary estimate of 51.6. The new orders sub-index also saw a significant rise, increasing from 50.2 to 53.2, the highest since February 2022. Rob Dobson, Director at S&P Global Market Intelligence, noted that the start of 2026 has laid a strong foundation for UK manufacturing, with business confidence reaching its highest level since the Autumn 2024 budget. However, the data also indicate a continued decline in manufacturing employment, although the rate of job losses was the lowest since the October 2024 increase in employment taxes. Additionally, business costs rose at the fastest pace since August 2025. The manufacturing PMI is a key indicator of industrial activity and economic health, with values above 50 signaling growth. Given the importance of manufacturing to the UK economy, both in terms of domestic production and export stability, continued export growth and cost stabilization in the coming months could further enhance the sector. Nonetheless, ongoing job losses and rising expenses present challenges that may impact industrial progress.
Source: binance
