FX.co ★ UK Factory Growth Gains Momentum

The S&P Global UK Manufacturing PMI increased to 51.2 in December 2025, up from 50.2 in the previous month, surpassing the anticipated 50.4 and indicating the most robust growth since September 2024, according to preliminary figures. Manufacturing output saw its second month of expansion, achieving its most rapid rate in fifteen months, buoyed by stronger domestic demand. New orders experienced a resurgence, climbing at the quickest pace in 14 months. Despite this, employment continued to decrease, influenced by cost pressures and prevailing uncertainty. Input price inflation rose to its highest rate since May, fueled by wage increases, escalating fuel prices, and rising technology costs, while the prices at factory gates elevated to their highest point since August. Business optimism showed signs of improvement, with manufacturers pointing to a modest recovery in output expectations. Nevertheless, concerns persisted regarding competitive pressures and substantial operating costs both domestically and internationally.