UK manufacturing output rose in October for the first time in over a year, marking a shift that has largely gone unnoticed. The sector has spent much of the past 18 months under pressure, weighed down by weak demand, high input costs, and persistent uncertainty. But the latest signals suggest those conditions are beginning to ease. The official purchasing managers’ index moved to a twelve-month high of 44.8 in October, still below the 50 mark, but moving in the right direction and at its strongest level in a year.
More notably, the uptick in output was broad-based across several categories. Transport, machinery, and consumer goods producers all reported month-on-month increases. Manufacturers also cited early signs of improving orders, both at home and abroad, even if export volumes remain uneven. With inventories normalising and supply chain disruption largely resolved, many firms have shifted focus back to production, which has begun to feed into output data.
Confidence among manufacturers is also strengthening. Business expectations are now at their highest since early 2022, supported by better order visibility and a more stable input cost environment. Energy prices, which had been a major drag in the previous winter, have moderated, giving firms more breathing room on margins. With pricing power still limited, the relief on cost pressure is material and timely.
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.
