UK Manufacturing PMI Shows Improvement Despite Slight Revision

URGENT UPDATE: The final December 2025 Manufacturing PMI for the UK has been confirmed at 50.6, slightly down from the preliminary reading of 51.2. This minor adjustment marks a significant improvement from November, indicating a continued recovery in the UK manufacturing sector.

New reports confirm that both output and new orders have increased, pushing the headline PMI reading to a 15-month high. This development is a positive signal for the industry as it heads into the new year. However, the data also reveals a mild uptick in price pressures, with input cost inflation rising and output charges increasing following a decline in November.

According to S&P Global, “Further signs of growth emanated from the UK manufacturing sector before the turn of the year.” The report highlights that output has risen for the third consecutive month, and new order intakes have improved, albeit slightly, for the first time since September 2024. The domestic market continues to drive growth, although new export business has struggled, falling for almost four years, yet is now showing signs of stabilization.

As the year comes to a close, UK manufacturers are experiencing reduced headwinds, with concerns surrounding the Autumn Budget, tariffs, and the JLR cyber-attack moderating. The question remains whether this growth can be sustained as we enter 2026. Analysts emphasize the need for a shift in the expansion base towards rising demand rather than just inventory building and backlog clearance.

The recent interest rate cut in December may help facilitate this transition, encouraging both manufacturers and their customers to increase spending and investment. However, there is a note of caution; business optimism has dipped for the first time in three months as manufacturers remain uncertain about future conditions.

As the UK manufacturing sector navigates these developments, all eyes will be on its ability to maintain growth momentum into the new year. The key factors to watch will be demand trends and the effectiveness of the recent policy changes aimed at bolstering the economy.

Stay tuned for more updates as this story develops.