The UK’s manufacturing sector has moved back into growth for the first time in more than a year, signalling a potential shift after an extended period of weak demand and contraction. The latest S&P Global UK manufacturing PMI rose to 50.2 in November, up from 49.7 in October and in line with forecasts. A reading above 50 marks expansion, making this the sector’s first month of growth since September 2024.

Several indicators suggest fresh momentum. Output increased for the second consecutive month and new business finally steadied after 13 months of continuous decline. Domestic demand showed clearer signs of improvement, helping to stabilise conditions, while the fall in new export orders slowed noticeably. 

This delivered the strongest export performance in a year, adding weight to the view that demand pressures may be easing. Business sentiment also strengthened, with optimism reaching a nine month high.

The upturn, however, remains uneven across the industry. Larger manufacturers were responsible for most of the improvement, recording stronger production volumes and firmer order books. Small and medium sized enterprises continued to contract, reflecting the persistent gap in resilience, access to capital and margin stability across different tiers of the sector.

Looking ahead, forward sentiment is improving. The survey found that 56 per cent of manufacturers expect output to rise over the coming year, pointing to greater confidence in market conditions and in the potential for renewed investment. While risks remain, the return to positive territory suggests the sector is beginning to stabilise after a protracted period of uncertainty.

Access the full article to uncover the broader market implications and what this early recovery could signal for the months ahead.

(Photo Credits to PA Archive)