Rob Dobson, director of S&P Global Market Intelligence, said that at the end of the year, the UK manufacturing sector is releasing more signs of growth. Output increased for the third month in a row, and the number of new orders improved for the first time since September 2024. The domestic market remains a positive engine of economic growth, and the new export business, although it has been declining for four consecutive years, has taken a significant step towards stabilization. As the negative effects of uncertainties such as the fall budget, tariffs, and the Jaguar Land Rover cyber attack eased, British manufacturers benefited from several headwinds weakening before the end of the year. Early 2026 is expected to show whether economic growth can continue after these temporary stimuli have subsided. The basis for economic expansion needs to shift more towards increasing demand than increasing inventories and cleaning up backlogs. Interest rate cuts in December are expected to play a part in helping this transformation, encouraging manufacturers and their customers to increase spending and investment. But manufacturers are still skeptical — the business confidence index declined for the first time in three months in December.

Rob Dobson, director of S&P Global Market Intelligence, said that at the end of the year, the UK manufacturing sector is releasing more signs of growth. Output increased for the third month in a row, and the number of new orders improved for the first time since September 2024. The domestic market remains a positive engine of economic growth, and the new export business, although it has been declining for four consecutive years, has taken a significant step towards stabilization. As the negative effects of uncertainties such as the fall budget, tariffs, and the Jaguar Land Rover cyber attack eased, British manufacturers benefited from several headwinds weakening before the end of the year. Early 2026 is expected to show whether economic growth can continue after these temporary stimuli have subsided. The basis for economic expansion needs to shift more towards increasing demand than increasing inventories and cleaning up backlogs. Interest rate cuts in December are expected to play a part in helping this transformation, encouraging manufacturers and their customers to increase spending and investment. But manufacturers are still skeptical — the business confidence index declined for the first time in three months in December.