2026-03-02 09:30:00
Key findings:
- New export orders rise at quickest pace in four and-a-half years
- Business sentiment stays close to January’s recent
high
Comment:
Rob Dobson, Director at S&P Global Market Intelligence
“UK manufacturing has made an encouraging start to
2026. Output rose at the quickest pace in 17 months
during February, building on a solid upturn in January,
as companies enjoy rising intakes of new work from both
the home and overseas markets. Growth of new export
business hit a four-and-a-half year high, as improving
client confidence in markets such as North America,
mainland China, the EU and Middle East led to new
contract wins.
“The outlook also remains positive. Business optimism
among manufacturers stayed close to January’s recent
high, with close to three-fifths of all companies expecting
to expand production during the coming year. 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.
“Although the promising start to the year and positive
expectations for the future are not yet fully reflected in
the labour market, there are signs of stabilisation on the
jobs front too. The rate of decline in staffing levels was
only mild in February and eased to the weakest during the
current 16-month jobs downturn.
