The S&P Global UK Manufacturing PMI edged down to 51.7 in August 2026 from 51.9 in July, marking a five‑month low, though it was revised upward from the flash estimate of 51.5. Output expanded for a fifth consecutive month, but at its slowest pace since April. New orders increased from both domestic and overseas clients; however, gains were concentrated among medium and large manufacturers, offsetting ongoing weakness among smaller firms.
The overall rise in new business underpinned the strongest increase in employment in two years, signalling a recovery in hiring after earlier concerns that higher National Insurance contributions would weigh on headcounts. At the same time, supply chain disruptions continued to ease, and input cost inflation slowed to its weakest rate in six months. Looking ahead, around half of surveyed firms expressed optimism about business conditions over the next 12 months.
