2nd Mar 2026 09:53
(Alliance News) - UK manufacturing growth was worse than expected in February, survey results published on Monday showed; however there were "signs of stabilisation on the jobs front" as the rate of decline in staffing levels "was only mild".
The S&P Global manufacturing purchasing managers' index edged down a notch to 51.7 points in February from January's 17-month high of 51.8 points, underperforming against the flash reading of 52.0 points. Getting a bit closer to the neutral 50-point mark separating growth from contraction, it indicates the pace of growth in the UK's manufacturing sector slowed a bit in February.
Even so, manufacturing production in the UK rose for the fifth consecutive month, with the rate of expansion the fastest since September 2024, according to the survey.
S&P Global said: "Companies reported scaling up output in response to higher intakes of new business and slightly better client confidence. The trend in new export orders strengthened, with intakes of new work from overseas rising at the quickest pace for four-and-a-half years. There were reports of improved demand from mainland China, the EU, Middle East and North America."
Rob Dobson, director at S&P Global Market Intelligence commented: "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."
The PMI survey draws upon a panel of 650 companies in the UK manufacturing sector, with responses collected between February 10 and 24.
Final services and composite indices will be released Wednesday.
By Tom Budszus, Alliance News slot editor
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