UK manufacturing growth accelerates as export orders rise

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Tom KnowlesFebruary 2, 2026 at 03:01 PM

AI Summary

medium article 3 min

A recent survey indicates that UK manufacturing activity accelerated in January 2026, reaching its highest level since August 2024. The purchasing managers' index (PMI) rose to 51.8, driven by an increase in new export orders for the first time in four years, with factories reporting higher order volumes from Europe, the US, and China. This positive manufacturing data, along with other indicators like improved retail sales and GDP growth, suggests a strengthening UK economy. Economic confidence among business directors has also increased, signaling a potential subsiding of uncertainty related to the autumn budget. These factors are expected to influence the Bank of England's decision to maintain current interest rates at 3.75% as they await further data on inflation.

Key Entities & Roles

Key Player Opposition Context

Institute of Directors 40% Rachel Reeves 40% S&P Global Market Intelligence 50% Rob Dobson 50% China 60% Europe 60% United States 60% Bank of England ×280% UK ×290%

Keywords

manufacturing growth 90% purchasing managers index 80% uk economy 70% export orders 70% interest rates 70% economic confidence 60% bank of england 60% business activity 50% inflation 50%

Sentiment Analysis

Positive

Score: 0.40

Source Transparency

Source

The Guardian - World News

Political Lean

Center-Left (-0.40)

Far LeftCenterFar Right

Classification Confidence

90%

Geographic Perspective

United Kingdom

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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manufacturing growth purchasing managers index uk economy export orders interest rates economic confidence bank of england business activity inflation

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