PMI figures show fourth month of increase for manufacturers
11 Feb 2026
UK industry performed strongly at the start of the year with the latest CIPS manufacturing purchasing managers’ index (PMI) increasing month on month for the fourth consecutive time.
The index, which stood at 50.6 at the end of 2025, was up to 51.8 in January – a result applauded by RSM UK head of industrials Mike Thornton.
“This is a strong start to 2026 for the UK manufacturing sector. With the Autumn budget behind us… resilient UK manufacturers are increasing production,” he commented.
New orders increased to 53.2 and new export orders jumped to a four-year high at 51.9 demonstrating a strengthening pipeline at the start of 2026, continued Thornton. In spite of tariff and geopolitical risks, UK manufacturers were maximising new trade opportunities.
“If export demand continues, if we see no more tariff changes and if Industrial Strategy clarity boosts investment, then 2026 could unlock real growth for UK manufacturing”
Chief economist at the firm Thomas Pugh said the new orders increases were a likely indicator that underlying global demand was returning.
Both, however, warned that British manufacturing still faced considerable ongoing problems.
Thornton outlined: “Despite a positive start, crippling energy cost will persist in 2026, and UK manufacturers are bracing for the introduction of a new carbon border tax in 2027. In addition, any retaliatory tariff action from the EU could present a real risk to UK manufacturing and derail future growth.”
Pugh added that there was anecdotal evidence that labour costs were acting as a drag on employment levels, while commodity prices were continuing to impact.
Pic: Siemens
