The manufacturing PMI rose to 52.8 in October 2026, up from 51.9 in September, according to S and P Global data reported in early November. The manufacturing PMI is a survey of purchasing managers, where a reading above 50 shows growth and below 50 shows contraction. The rise to 52.8 shows factories expanded at a faster pace in October, helped by new orders and by demand linked to investment in technology and defence.
Services also improved. The services PMI rose to 52.8 in October from 52.1 in September, the highest since February, with new work growing at the fastest pace since January. Firms took on staff for the first time in just over two years, according to the survey of around 650 service firms collected between 12 and 28 October. The composite PMI, which combines manufacturing and services, rose to 52.9 from 52.0, its highest since February.
Manufacturing Pmi
Private-sector employment posted its first rise in 25 months, a sign that the jobs market may be stabilising after a long period of flat hiring. Costs are rising too, and interest rates have just gone up, so many owners of agencies, consultancies, IT firms, recruiters and transport businesses are asking whether to borrow to grow. S and P Global said the October figures underscored the near-certainty of a Bank of England rate hike in November, and it was right: on 5 November the Bank raised Bank Rate from 3.75% to 4%.
For manufacturers, higher rates add to borrowing costs, but stronger orders help offset that pressure. The Bank of England survey of chief financial officers found businesses expected prices to rise by 3.8% over the coming year, up from 3.7% in September, while wage rises were seen slowing. That suggests firms are passing on higher energy and material costs to customers, while keeping pay growth under control.
The outlook for manufacturing depends on export demand and on investment in the United Kingdom. The KPMG forecast for UK growth of 1.5% in 2026 cited investment in artificial intelligence and defence as key drivers, and the BDO output index rose to 100.46 in October, its highest since July 2022. If orders continue to grow, factories may add staff and invest in new equipment, even with higher borrowing costs.
Source: TradingNews
