FX.co ★ UK Manufacturing Shows Sharpest Contraction Since April

The S&P Global UK Manufacturing Purchasing Managers' Index (PMI) dropped to 46.2 in September 2025, down from 47.0 in August, and fell short of market forecasts of 47.1, according to a preliminary estimate. This figure indicates the sharpest contraction in the manufacturing sector since April, with production declining at the most rapid rate since March. Survey participants highlighted weak domestic and international orders, exacerbated by particular disruptions in the automotive supply chain due to plant stoppages at Jaguar Land Rover. Employment figures continued their downward trend, though the inflation of factory gate prices moderated to its lowest point since December 2024, indicative of intense competitive pressures. Despite the downturn, business confidence achieved its highest mark since February, bolstered by increased investment and optimism for a recovery in order volumes.