The UK’s manufacturing sector has returned to expansion for the first time in over a year, marking a potential turning point for an industry that has faced persistent demand weakness and a prolonged downturn. The latest S&P Global UK manufacturing PMI reached 50.2 in November, up from 49.7 in October and aligned with forecasts. A reading above 50 signals expansion, making this the sector’s first month of growth since September 2024.

Fresh momentum is emerging across key indicators. Output rose for a second consecutive month and new business stabilised after 13 months of uninterrupted decline. Strengthening domestic demand supported the improvement, while declines in new export orders eased, resulting in the strongest export performance in a year. Business optimism continued to rebound, reaching a nine month high.

Growth was not uniform. Larger manufacturers accounted for much of the expansion, reporting higher production volumes and improved order books. Small and medium sized firms, however, continued to contract, reflecting uneven recovery conditions and ongoing margin pressures.

Forward sentiment is strengthening. The survey found that 56 per cent of manufacturers expect higher output in the coming year, suggesting renewed confidence in market conditions and investment intentions. While uncertainties remain, the shift back into positive territory indicates that the sector is beginning to find firmer footing after a challenging period.

Explore the full story for broader market implications and what this recovery trend could mean for the months ahead.