Signs of further growth in UK manufacturing

According to Golden Ten Data on January 2, Rob Dobson, Director at S&P Global Market Intelligence, stated that towards the end of the year, the UK manufacturing sector has released more signals of growth. Output has increased for the third consecutive month, and the number of new orders has improved for the first time since September 2024 (albeit only slightly). The domestic market remains a positive driver of economic growth, while new export business, although having declined for four consecutive years, has taken a significant step towards stabilization. With the negative impacts of uncertainties such as the autumn budget, tariffs, and the Jaguar Land Rover cyberattack easing, UK manufacturers have benefited from the weakening of several headwinds before the end of the year. It is expected that early 2026 will show whether economic growth can be sustained after these temporary stimuli fade. The foundation for economic expansion needs to shift more towards growing demand rather than increased inventories and clearing backlogs. The interest rate cut in December is expected to play a role in facilitating this shift, encouraging manufacturers and their clients to increase spending and investment. However, manufacturers remain cautious—business confidence in December declined for the first time in three months.