British manufacturers started the final quarter of 2026 with the strongest output growth in more than two years, a survey showed on Monday, although fast-rising costs may worry the Bank of England ahead of its decision this week.
The numbers
The S&P Global UK manufacturing PMI was 52.8 in October (a five-month high) vs 51.9 in September, in line with the earlier flash estimate. The output component was 53.6 vs 51.5 — its highest since September 2024. Above 50 means expansion. Data were collected 12-27 October. Official data: manufacturing output rose 3.0% in the 12 months to August, the biggest increase since March 2024.
The cost warning
Manufacturers’ input costs rose at the fastest rate since June, one of the fastest paces since the last big surge in British inflation in 2022 — the tension behind the Bank of England decision this week (Reuters says the Bank “looks set to raise interest rates this week”; no rate level is stated here). Expectations for future output showed the biggest improvement since November 2025. The survey was collected before Chancellor John Healey’s first budget, which largely spared businesses from tax increases but announced a 3.9% rise in the minimum wage for next year.
What to watch next
The Bank of England decision this week; November’s PMI (whether output strength holds); whether input-cost pressure feeds into selling prices.
FAQ
What is a PMI? A purchasing managers’ index surveys factory managers on output, orders, employment and prices.
What does 52.8 mean? Above 50 means expansion; 52.8 is a five-month high, with output at 53.6, its strongest since September 2024.
Why do rising input costs matter for the Bank of England? Because fast-rising costs can feed inflation, complicating its rate decision this week.
Related coverage
Related coverage: Asia PMI wrap (a different region).
Sources
Sources: Reuters by David Milliken, “UK October manufacturing PMI shows fastest output growth in two years”, 2 Nov 2026 — Reuters via KWSN.
