UK manufacturing output rose unexpectedly in May, supported by growth across several higher-value industries and increasing interest in domestic supply chains.
Production increased by 0.1% during the month, against expectations for a decline. Seven of the thirteen manufacturing subsectors recorded growth, led by machinery and equipment. Computer, electronic and optical products, electrical equipment and chemicals also performed well.
Annual manufacturing output increased by 2.3%, the strongest rate since March 2024. The figures point to improving conditions across parts of the sector, although performance remains uneven.
The wider economy grew by 0.1% in May, with services providing most of the support. Manufacturing therefore remains one part of a mixed economic picture, but the latest data suggests that industrial activity is holding up better than expected.
At the same time, UK manufacturers see a clear opportunity to take a larger role in critical supply chains. Many businesses believe they have the skills and production capacity to supply strategically important sectors.
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.
