Higher New Orders, Output Push UK Manufacturing PMI to 15-month High in December 2025

10:06 AM EST, 01/02/2026 (MT Newswires) -- Britain's manufacturing sector ended 2025 on an upbeat note as it saw further stabilization in December 2025, with new order intakes edging higher for the first time since September 2024 and output rising for the third straight month. The S&P Global UK Manufacturing PMI reached a 15-month high of 50.6 in December 2025, compared with the flash estimate of 51.2 and the previous month's 50.2, according to final data from S&P Global published Friday. The reading marks the second month it came in above the 50 neutral threshold. The final figure indicates an increase in production volumes, mainly driven by higher output in the consumer, intermediate and investment goods industries. Manufacturers building up their inventory of finished products and clearing their backlogs of work also contributed to the increase. A marginal rise in new order intakes was observed in December 2025 on the back of higher demand in the domestic market. In contrast, overseas demand recorded a decline for the 47th month in a row, with the decrease in new export business continuing, albeit at a "mild" rate. Meanwhile, employment in the manufacturing sector saw its 14th consecutive month of continued job losses amid redundancies, non-replacement of leavers, hiring freezes and companies' efforts to control costs amid a "mild" increase in price pressures. "UK manufacturers benefited from several reduced headwinds towards the end of the year, as the negative impacts of the uncertainty surrounding the Autumn Budget, tariffs and the JLR cyber-attack all moderated," said S&P Global Market Intelligence director Rob Dobson. "The start of 2026 will show if growth can be sustained after these temporary boosts subside. The base of the expansion needs to shift more towards rising demand and away from inventory building and backlog clearance. December's interest rate cut will hopefully play some part in assisting this transition, encouraging manufacturers and their customers to increase spending and investment." Looking ahead, the outlook for the manufacturing sector weakened, with business confidence slipping for the first time in three months as companies remain concerned over high costs, increased taxes and geopolitical uncertainty, among other things.