Manufacturing moves back into expansion

UK manufacturing showed firmer signs of recovery in December 2025, as output and new orders moved back into positive territory for the first time in over a year. The latest data from the sector’s purchasing managers index confirmed a second consecutive month of expansion, with the headline figure reaching 50.6.

Manufacturers reported their first rise in new UK orders since September 2024, helping to lift overall production volumes for the third straight month. After a long stretch of weakness, this is a clear signal that confidence is returning among UK customers, and it is beginning to show up in order books. Some firms pointed to improved clarity around economic policy and easing supply disruptions as reasons for the uptick.

Orders from overseas continued to decline overall, but at a slower pace than in recent months. There were signs of increased activity from buyers in the US, Asia-Pacific and the Middle East, though these gains were not yet strong enough to drive a broader turnaround in external trade.

Likewise Group PLC (LON:LIKE) is a distributor of floorcoverings and matting and has the opportunity to consolidate the domestic and commercial floorcovering markets to become one of the UK’s largest distributors in this sector.

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