Home / Business and Economy / UK Manufacturing Roars Back: January PMI Hits Highest Since August 2024
UK Manufacturing Roars Back: January PMI Hits Highest Since August 2024
2 Feb
Summary
- Manufacturing PMI reached 51.8 in January, its highest since August 2024.
- New orders component surged to 53.2, the highest since February 2022.
- Business confidence climbed to its peak since the 2024 Autumn budget.
The UK manufacturing sector began 2026 with encouraging resilience, as evidenced by the January Purchasing Managers' Index rising to 51.8. This marks the highest figure recorded since August 2024, signaling a positive turnaround after a sluggish end to the previous year.
The surge was primarily fueled by a substantial increase in new orders, reaching 53.2, the highest since February 2022. This growth was bolstered by a resurgence in export orders, which saw their first increase in four years, reflecting heightened demand from key global markets.
Business confidence within the manufacturing sector also experienced a significant bounce, reaching its highest point since prior to the 2024 Autumn budget. This renewed optimism follows a period of uncertainty, with recent government fiscal decisions influencing business sentiment.
Despite the positive momentum in new orders and confidence, the manufacturing PMI data indicates a continued, albeit moderating, decline in employment. Concurrently, businesses reported the sharpest rise in input costs since August 2025, driven by increased prices for a range of materials and energy, alongside higher labor costs.
