UK manufacturing PMI rises to 52.8 in October as firms pass cost pressures to customers
The S&P Global survey shows production accelerating and firms shifting higher input costs onto buyers, with future pressure from a minimum‑wage rise.
By Felo News Desk · Published
UK manufacturers posted a Purchasing Managers' Index of 52.8 for October, up from 51.9 in September, according to the S&P Global survey, indicating a year‑long stretch of growth.
What happened
The October reading, above the 50‑point growth threshold, reflects the fastest pace of factory output in 25 months. Survey respondents reported stronger new‑business orders and higher demand from domestic buyers and overseas markets, including China, the EU and the United States. At the same time, firms said they were raising prices to cope with rising fuel, energy and transportation costs.
What the reports add
Both the Independent and the Evening Standard reported the same PMI figures and noted that manufacturers are experiencing longer delivery times because of shipping re‑routing, port congestion, material shortages and ongoing disruption to key transport routes caused by global conflict. The Independent highlighted that the survey is “watched closely by economists”, while the Standard stressed that the reading means overall activity has been expanding for a full year. Both outlets also pointed out that input‑cost inflation has been rising for almost three years and that October saw the sharpest increase since the spring.
What was said
Rob Dobson, director at S&P Global Market Intelligence, told the Independent that manufacturers “showed resilience in the lead‑up to the autumn Budget”. He warned that the sector could face “increased pressure from the planned rise in the national minimum wage from April”, which was confirmed in the recent Budget. He added firms are being “buffeted by rising fuel, energy and transportation costs as supply‑chain shocks and delays continued to drive up inflationary pressures”.
Matt Swannell, chief economic adviser to the Item Club, said the signs of growth come as “the economy as a whole continues to show resilience in the face of the energy shock from the conflict in the Middle East”. He noted that “some of this strength is due to AI‑related activities and looks durable”, but cautioned that “domestic consumer demand will come under pressure as real incomes are squeezed by rising inflation”. He warned that higher costs for manufacturers across energy, fuel and chemicals are likely to mean their prices rise further “as cost increases are passed onto consumers”.
How it came about
The latest PMI data follows Chancellor John Healey’s autumn Budget, which froze fuel duty at 52p per litre and confirmed a rise in the national minimum wage from April (see Felo coverage). Earlier in the quarter, Felo reported on SMEs tightening travel spending amid record fuel prices, underscoring the broader cost pressures affecting UK businesses.
Key facts
- The S&P Global UK manufacturing PMI was 52.8 in October, up from 51.9 in September. (independent.co.uk)
- Factory production reached a 25‑month high in October. (independent.co.uk)
- Manufacturers reported stronger new‑business orders from China, the EU and the US. (independent.co.uk)
- Rob Dobson said firms face rising fuel, energy and transportation costs and an upcoming minimum‑wage increase. (independent.co.uk)
Timeline
- 2026-10-27 — Chancellor John Healey announced a fuel duty freeze and confirmed a rise in the national minimum wage.
- 2026-10-23 — Felo reported on SMEs coping with record fuel prices affecting travel costs.
- 2026-10-16 — Felo covered SMEs shifting focus to customer retention as acquisition costs rose.
Sources
- [1] independent.co.uk
- [2] standard.co.uk
