(Alliance News) – UK manufacturing showed further signs of stabilisation at the end of 2025, with output and new orders edging higher and the sector recording its strongest reading in more than a year, according to survey data published by S&P Global on Thursday.
The seasonally adjusted S&P Global UK manufacturing purchasing managers’ index rose to 50.6 points in December from 50.2 in November, marking a 15-month high and remaining above the 50.0-point threshold that separates expansion from contraction.
The final reading was, however, below the earlier flash estimate of 51.2 points published in mid-December.
Manufacturing output increased for a third consecutive month, supported in part by stock building and efforts to clear backlogs of work. New orders rose for the first time since September 2024, with domestic demand cited as the main driver, while the decline in export orders eased to one of the weakest rates seen in nearly four years.
Growth was uneven across the sector. Output rose across consumer, intermediate and investment goods producers, the first time this has occurred since August 2024, but the expansion was concentrated among large manufacturers. Small and medium-sized firms continued to report declines in both output and new orders.
Employment remained in contraction territory, with job losses recorded for a 14th straight month, although the pace of decline eased to its weakest level during that period.
Price pressures picked up in December. Input cost inflation accelerated as manufacturers reported higher prices for a range of materials, including energy, metals, and electronics, and as suppliers passed on higher payroll-related costs. Output prices also rose after falling in November.
Rob Dobson, director at S&P Global Market Intelligence, said: “Further signs of growth emanated from the UK manufacturing sector before the turn of the year. Output rose for the third successive month and new order intakes improved, albeit slightly, for the first time since September 2024.”
He added: “UK manufacturers benefited from several reduced headwinds towards the end of the year, as the negative impacts of the uncertainty surrounding the autumn budget, tariffs and the JLR cyber-attack all moderated.
“The start of 2026 will show if growth can be sustained after these temporary boosts subside.”
The UK manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers at around 650 manufacturers, with data collected between December 4 and 18.
The UK’s services and composite PMIs will be published on Tuesday.
By Eva Castanedo, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.