UK PMI Index: How to Assess Your Manufacturing Potential in January 2026

The January production outlook for the United Kingdom brought positive news for business circles. The key indicator, which helps assess the sector’s health, reached a value of 51.8 points — the highest since August 2024. This rise reflects growing confidence among manufacturers in the economic situation and the recovery of demand both domestically and internationally.

Surge above August’s peak

Final data from the business activity index show a recovery largely driven by an increase in new orders. In January, the orders sub-index jumped to 53.2 points, the most significant increase in nearly four years. According to Jin10, this figure significantly exceeds the December reading of 50.6 points and indicates the first period of rising demand from foreign partners in many years.

Rob Dobson from S&P Global Market Intelligence noted that the manufacturing sector entered 2026 on a solid footing, demonstrating resilience to market fluctuations. Business sentiment also reached its highest point since the fall 2024 budget, indicating improved prospects among companies.

Export orders and international demand

A particularly notable development was the resumption of growth in export orders for the first time in four years. This means that British manufacturers are once again gaining recognition in global markets, which supports expansion of production capacity and future development planning. Growth in export demand is one of the key factors influencing the overall index and helps gauge the stability of the country’s export base.

Employment in manufacturing: slight progress

The labor market in the manufacturing sector also showed signs of stabilization. Although employment continued to decline, the rate of decrease was the slowest since October 2024, when payroll taxes were increased. This indicates that employers are becoming more cautious about layoffs and are expecting further production growth.

Meanwhile, investment expenses in manufacturing reached their highest levels in recent months, signaling business readiness to invest in development and modernization.

How to interpret these data

An PMI index above 50 points generally indicates expansion in manufacturing activity, while below 50 signals contraction. The value of 51.8 demonstrates moderate but confident growth. For investors and business leaders, these indicators help understand their position in the economic cycle and make informed decisions about expanding their operations. The January 2026 data suggest the beginning of a positive trend in the UK economy.