UK Manufacturing PMI was finalized at 50.2 in November, up from 49.7 and marking a 14-month high. S&P Global’s Rob Dobson said the month delivered further signs of recovery, with output rising for a second straight month and new orders stabilizing after more than a year of continuous decline. Business optimism also strengthened to a nine-month high.
What stands out is that this improvement came despite elevated business uncertainty ahead of the Autumn Budget, during which some firms maintained a cautious tone. With that political overhang now lifted, December could see a further boost in sentiment—though Dobson noted that the Chancellor’s “absence of significant growth-promoting measures” may limit the scale of any rebound in activity or investment.
Price indicators added a dovish twist. Rising competitive pressures and cooling cost inflation pushed factory gate prices lower for the first time in more than two years. This combination of a still-soft industrial recovery and easing price pressures reinforces the shift in BoE’s policy debate “away from inflation fears towards supporting economic growth”.
