UK Manufacturing PMI Surges to 14-Month High, Recovery Signs Emerge

BREAKING NEWS: The UK Manufacturing Purchasing Managers’ Index (PMI) has surged to a 14-month high of 50.2 in November 2025, signaling a significant recovery in the sector. This marks the first reading above the neutral 50.0 threshold since September 2024, indicating an end to a prolonged downturn in new business intakes.

According to the latest data from S&P Global, the PMI rose from 49.7 in October, driven by improved domestic demand and a softer contraction in new export orders. This promising development comes just ahead of the Chancellor’s Budget announcement on November 26 and reflects a stabilization in new business after a troubling 13-month decline.

Manufacturers reported a boost from increased sales domestically, with the contraction in new export business easing to a 12-month low. However, foreign demand remains a concern, continuing its decline for the 46th month in a row, as reports indicate reduced orders from clients in the US, EU, China, and Brazil.

The increase in manufacturing output for the second consecutive month is encouraging, though the growth remains subdued. Only large firms experienced production gains, while small and medium enterprises (SMEs) faced renewed downturns. The outlook for the sector is brightening, with 56% of manufacturers expressing optimism for increased output over the next year, compared to just 11% expecting a contraction.

Rob Dobson, Director at S&P Global Market Intelligence, stated, “November saw further signs of recovery in the UK manufacturing sector. The headline PMI is back in growth territory for the first time in over a year, with output up for a second month and the trend in new business stabilizing following 13-months of continual decline.”

Despite the positive trends, job losses continued for the thirteenth month, attributed to cost-saving measures and hiring freezes. The ongoing uncertainty surrounding government policy and trade issues has contributed to this situation, leading to cuts across full-time, part-time, agency, and temporary positions.

Supply chain strains persisted, with vendor performance deteriorating sharply, reflecting issues such as raw material shortages and transportation delays. However, the average factory gate prices fell for the first time in over two years, suggesting pressure on manufacturers to maintain competitiveness amidst weak market conditions.

As the manufacturing sector shows signs of recovery, the focus now shifts to the upcoming budget announcement and its potential impact on growth. Manufacturers are hopeful that the lifting of uncertainty will provide a much-needed boost in December.

This latest PMI data not only highlights the resilience of the UK manufacturing sector but also points to a critical moment for economic recovery. The next steps will be closely monitored as businesses react to government policies in the wake of this improvement.

Stay tuned for further updates as this story develops.