UK manufacturing activity remained in contraction territory in January 2025, though the S&P Global UK Manufacturing PMI did rise slightly to 48.3, exceeding the preliminary estimate of 48.2 and improving on December's 11-month low of 47.0.
UK factory output falls again
Despite this small increase, the PMI still points to a significant weakening of operating conditions. Output continued to decline for the third consecutive month, and new orders also fell for the fourth straight month, reflecting persistently weak demand in both domestic and international markets. Job losses accelerated to their fastest rate in almost a year, marking the third month of declining employment. Supply chain pressures persisted, as evidenced by lengthening vendor lead times.
UK factory costs surge, confidence weak
On the price front, both input costs and output prices rose at a faster pace, with input price inflation hitting a two-year high. Overall business confidence remained weak, close to the lowest levels seen in the past two years.
