UK manufacturing upturn continues as export orders surge
By Abigail Townsend
Date: Monday 02 Mar 2026
(Sharecast News) - The UK's manufacturing sector continued to rebound in February, a closely-watched survey showed on Monday, as export orders surged.
The S&P Global UK manufacturing purchasing managers' index was 51.7 in February, below the flash estimate of 52.0 but little changed on January's 51.8. The PMI has been above 50.0 for four consecutive months.
A reading above the neutral benchmark of 50.0 indicates growth, while one below it suggests contraction.
Respondents to February's survey cited a rise in intakes of new business from both domestic and overseas markets, with new export orders rising at the quickest pace in four and a half years. Demand improved in particular from mainland China, the European Union, Middle East and North America.
Output, meanwhile, rose at the quickest pace in 17 months, building on January's increase.
Consumer goods was the strongest-performing sector, S&P Global noted.
Rob Dobson, director at S&P Global Market Intelligence, said: "UK manufacturing has made an encouraging start to 2026.
"The outlook also remains positive. New product launches, rising client confidence and planned investments are all forecast to help generate growth over the next year, offsetting some of the caution companies are still exhibiting due to recent government policy changes and ongoing geopolitical uncertainty, especially in relation to US tariffs."
However, Matt Swannell, chief economic adviser to the EY Item Club, sounded a note of caution,
He said: "The PMI has previously shown it fluctuates significantly in response to changes in businesses' mood rather than activity. Geopolitical disruption in the Middle East is increasing global economic uncertainty and the PMI could retrace its recent rise if volatility in the region continues.
"The manufacturing sector's prospects remain modest over the coming year. An uncertain global economic outlook will likely weigh on external demand, while slowing real income growth and tightening fiscal policy point to subdued domestic demand conditions."
The survey was carried out between 10 and 24 February, ahead of the US attacks on Iran. Questionnaires were sent to a panel of around 650 manufacturers.
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