February saw the upturn in UK manufacturing continue, as companies reported rising intakes of new business from both domestic and overseas markets.
The outlook for the sector also remained relatively positive, with almost three-fifths of manufacturers expecting output to rise over the coming 12 months.
The seasonally adjusted S&P Global UK Manufacturing Purchasing Managers’ Index (PMI) posted 51.7 in February, little-changed from January's 17-month high of 51.8 but below the earlier flash estimate of 52.0. The PMI has signalled expansions in each of the past four months.
February saw three of its five components (new orders, output and supplier delivery times) at levels consistent with improved operating conditions, in contrast to the declines registered in employment and stocks of purchases.
Manufacturing production rose for the fifth consecutive month, with the rate of expansion the fastest since September 2024 (17-month high). Companies reported scaling up output in response to higher intakes of new business and slightly better client confidence. The trend in new export orders strengthened, with intakes of new work from overseas rising at the quickest pace for four-and-a-half years.
Rob Dobson, Director at S&P Global Market Intelligence, said: “UK manufacturing has made an encouraging start to 2026. Output rose at the quickest pace in 17 months during February, building on a solid upturn in January, as companies enjoy rising intakes of new work from both the home and overseas markets.
“Growth of new export business hit a four-and-a-half year high, as improving client confidence in markets such as North America, mainland China, the EU and Middle East led to new contract wins.
"The outlook also remains positive. Business optimism among manufacturers stayed close to January's recent high, with close to three-fifths of all companies expecting to expand production during the coming year. New product launches, rising client confidence and planned investments are all forecast to help generate growth over the next year, offsetting some of the caution companies are still exhibiting due to recent government policy changes and ongoing geopolitical uncertainty, especially in relation to US tariffs.
"Although the promising start to the year and positive expectations for the future are not yet fully reflected in the labour market, there are signs of stabilisation on the jobs front too. The rate of decline in staffing levels was only mild in February and eased to the weakest during the current 16-month jobs downturn.”
