British manufacturing PMI in January hit the highest level since August 2024

TokenDustCollector · 2026-02-14T16:08:21+00:00

At the beginning of 2026, the UK manufacturing sector showed increased activity, reaching 51.8 points on the PMI index. The rise in new orders and export demand indicates a recovery in competitiveness. The pace of job cuts slowed, and the business confidence level reached its highest since fall 2024.

TokenDustCollector

2026-02-14 16:08:21

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The beginning of 2026 brought a positive signal for the UK manufacturing sector. The manufacturing PMI jumped to 51.8 in January — the highest level since August 2024. The increase compared to December’s 50.6 indicates an acceleration in business activity. According to Jin10, the preliminary PMI estimate was slightly lower than the final — 51.6.

New Orders Show Strong Growth for the First Time in Four Years

The most impressive part of the data relates to new orders. The new orders sub-index rose from 50.2 in December to 53.2 in January — the highest since February 2022. This surge is primarily driven by a revival in export demand. For the first time in four years, UK manufacturers recorded growth in export contracts, indicating a recovery in the competitiveness of British industry on global markets.

Rob Dobson, Director of Market Intelligence at S&P Global, noted: “The UK manufacturing sector entered 2026 on a solid footing, demonstrating encouraging stability. Business confidence also saw a significant increase, reaching its highest level since the Autumn Budget 2024.” These words reflect a fundamentally changed industry outlook.

Labor Market: Slowing Decline Amid Rising Investments

Employment data indicate a continued reduction in the manufacturing workforce, but the pace of decline has slowed. This is the first slowdown since October 2024, when employment taxes were increased. Simultaneously, there is an acceleration in the growth of manufacturing investment costs — the indicator reached its highest levels.

Historical Context: Why August 2024 Was a Turning Point

A comparison with August 2024 is revealing: back then, the PMI was at significantly lower levels, reflecting a period of uncertainty and slowdown. The current January 2026 figures suggest a transition to a new growth cycle, supported by a recovery in external demand and increased business confidence. This reverses the trends that dominated in August and for several months afterward.

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