Source: Sharecast
The S&P Global UK manufacturing PMI rose to a 25-month high of 52.8 from 51.9 in September, in line with expectations and unchanged on the earlier flash estimate.
A reading below the neutral 50.0 benchmark suggests contraction, while one above it indicates growth.
Respondents flagged improved intakes of new business as well as stronger market conditions across the consumer, intermediate and investment goods industries. New work intake rose at the fastest rate since July, with strong demand from both domestic and overseas clients, including notable growth in sales to Brazil, mainland China, the European Union, Middle East and the US.
However, staffing levels were unchanged, bringing a six-month run of jobs growth to a close, while input cost inflation accelerated.
The data were collected between 12 and 27 October, ahead of this year’s Budget on 28 October.
Rob Dobson, director at S&P Global Market Intelligence, said: “UK manufacturing showed resilience in the lead up to the Budget.
“Concerns about possible policy changes filtered through to the labour market, however. The remainder of 2026 will see if the confirmed rise in the minimum wage for next year will continue to weigh on employment trends.
“Rising labour costs are also coming at a time when the cost environment is already generally high: as well as higher wage costs, manufacturers are being buffeted by rising fuel, energy and transportation costs as supply chain shocks and delays continued to drive up inflationary pressures.”
Average vendor lead times lengthened to one of the greatest extents during the past four years, the survey found.
However, despite this business optimism rose to an eight-month high, as respondents looked ahead to planned business expansions, an ongoing market recovery, spending on capital equipment and artificial intelligence, including data centres, and better order pipelines.
The survey, which has been running since 1992, is based on responses to questionnaires sent to a panel of around 650 manufacturers.