Financial News: UK Manufacturing Growth Hits 4-Year High

UK Manufacturing Growth Hits 4-Year High

06/01/2026 - 10:09:00 (RTTNews)

(RTTNews) - The UK manufacturing activity expanded at the quickest pace in four years despite facing inflationary and supply chain pressures, survey data from S&P Global showed Monday.

The final manufacturing Purchasing Managers' Index rose to a 48-month high of 53.9 in May from 53.7 in the previous month. The flash score was 53.7. The index had remained above the neutral 50.0 mark for the seventh straight month.

Output grew for the second successive month, led by expansions in the intermediate and investment goods industries. Nonetheless, the recent growth signals are momentary, as manufacturers noted that clients were front-loading purchases to mitigate expected price rises and supply chain disruption.

Higher demand from both domestic and foreign markets drove new orders to increase for the sixth straight month.

On the price front, input price inflation accelerated to a near-year high, led by higher costs for chemicals, electronics, energy, foodstuffs, fuels, plastics, metals, packaging, paper, and timber. As a result, selling prices rose at the steepest pace since July 2022.

The ongoing war in the Middle East fueled supply chain pressures, and increased delivery times were caused by shipping delays due to restrictions on passage through the Strait of Hormuz.

Looking ahead, business confidence improved to a 3-month high as the majority of firms' optimism was boosted by stronger market demand, new product launches, company growth targets, hopes for improved geopolitical conditions, and rising export sales.

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