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The UK manufacturing sector showed renewed momentum to start 2026, with key activity indicators signaling expansion across production and new work volumes.
Recent data indicates the S&P Global UK Manufacturing Purchasing Managers’ Index (PMI) climbed to 51.8 in January, the highest reading since August 2024 and a clear signal of growth after months of soft conditions.
An uptick in UK manufacturing activity — especially export demand — can signal increased orders for engineered components, substrates, industrial panels, and downstream fabrication materials. For suppliers and fabricators connected to global supply chains, these trends suggest potential growth opportunities both domestically and in export channels.
What’s Driving Growth
- Export orders led the upswing — January marked the first increase in export demand in almost four years, driven by stronger orders from Europe, the United States, China, and emerging markets. This export momentum is a critical lift for UK manufacturers, particularly those supplying intermediate goods and components.
- Domestic production expanded for the fourth consecutive month, demonstrating broader resilience beyond just foreign demand.
Business Optimism and Confidence
- UK manufacturers’ confidence climbed to its highest level since before the 2024 Autumn Budget, reflecting improved economic sentiment among firms planning investments and anticipating continued demand growth.
- Despite ongoing global uncertainties including inflationary pressures and supply chain shifts, many manufacturers are beginning the year with a cautiously optimistic outlook.
Challenges Still on the Horizon
- Employment in the sector remains weak, with staffing levels declining for more than a year, though at a slower pace than in previous months.
- Input costs and selling prices continued to rise, driven largely by higher raw material charges and increased costs from suppliers — factors that could eventually influence pricing and margins for the surface & panel industry.
