The S&P Global UK Manufacturing PMI rose to 52.8 in October 2026 from 51.9 in September, in line with forecasts and marking its highest level since May. Output increased for a seventh consecutive month and at its fastest rate in just over two years, driven by stronger new business flows and improving market conditions. New orders expanded at their quickest pace since early in the first quarter.
However, this stronger activity did not feed through to job creation, with employment levels remaining unchanged after six consecutive months of growth. At the same time, supply chains stayed under strain: input cost inflation picked up, and vendor lead times lengthened to one of the greatest extents in four years. Output prices rose at their fastest rate in three months.
Business confidence strengthened to an eight-month high, underpinned by planned capacity expansions, expectations of further market recovery, increased investment in capital equipment and AI, new product launches, and a more robust order pipeline.
