The UK manufacturing sector entered 2026 with signs of gradual improvement as demand conditions strengthened across both domestic and international markets. February data indicated that operating conditions continued to expand, suggesting that activity is stabilising after a prolonged period of uncertainty. The manufacturing purchasing managers’ index registered 51.7 during the month, broadly in line with January’s reading and remaining above the threshold that signals month on month expansion.
Production growth accelerated during February, reaching its strongest pace in roughly seventeen months. Manufacturers reported that rising new orders encouraged firms to increase output levels, supported by improving client confidence. The growth trend reflects a combination of renewed domestic demand and a noticeable improvement in export activity, which has become a more important driver of the sector’s recovery.
International demand was a particular area of strength. New export orders increased at the fastest pace in four and a half years, with manufacturers reporting stronger demand from several key overseas markets including mainland China, the European Union, the Middle East and North America. The expansion in export orders suggests that global demand conditions may be becoming more supportive for UK producers, potentially improving revenue visibility for internationally exposed firms.
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.
