UK manufacturing grew fastest since 2024, boosted by surge in exports and output, despite ongoing job cuts and rising costs.

UK manufacturing expanded at its fastest pace since August 2024, with the PMI rising to 51.8 from 50.6 in December, driven by the first increase in export orders in four years, particularly from the US, China, and Europe. Output grew for the fourth consecutive month, supported by stable domestic demand and restocking. Business confidence reached its highest level since before the 2024 autumn budget, though job cuts continued for the 15th month, with the pace slowing to its weakest since the downturn began. Rising costs from higher wages, national insurance, and commodity prices are pressuring margins.