Key details:
- New export orders rise for first time in four years
- Business optimism at highest level since before
2024 Autumn budget
Comment:
Rob Dobson, Director at S&P Global Market Intelligence
“UK manufacturing made a solid start to 2026, showing
encouraging resilience in the face of rising geopolitical
tensions. Rates of output and order book growth
accelerated, while new export business rose for the first
time in four years, with Europe, China and the US the main
recipients.
“There was also a positive bounceback in business
confidence, which rose to its highest level since before
the 2024 Autumn budget, as manufacturers focussed on
opportunities lying ahead despite persistent concerns
about the geopolitical environment, Government policy
and tariff tensions.
“There was also encouraging news on the jobs front.
Although the strongest rise in new business for almost
four years was insufficient to fully quell reductions
to staff headcounts, the rate of cutting slowed to its
weakest since job losses started 15 months ago. Cost
pressures are creeping higher though, as the pass
through of the increased Minimum Wage and employer
NI contributions continue to work through the supply
chain alongside the rising costs for commodities such as
metals.”
