UK manufacturing showed tentative signs of life in October, with the final S&P Global PMI rising to 49.7 from September’s 46.2. However, the improvement remains fragile as sluggish demand and stock adjustments drove much of the uptick rather than a sustained pickup in new orders.
Rob Dobson, Director at S&P Global Market Intelligence, said the October survey was encouraging but cautioned that the rebound “could prove short-lived.” Output growth largely stemmed from manufacturers working through backlogs and allowing inventories to build amid weak demand at home and abroad.
Dobson added that upcoming fiscal developments could complicate the outlook further. Many firms worry that the forthcoming Budget may aggravate structural challenges left by last year’s policy tightening, weighing on confidence even as activity improves. Business optimism rose to an eight-month high but remains below its long-run average.
