UK manufacturing sector returns to growth in November

(Sharecast News) - The UK manufacturing sector returned to growth in November, according to a survey released on Monday. The S&P Global manufacturing purchasing managers' index rose to a 14-month high of 50.2 from 49.7 in October. This was the first reading above the 50.0 mark that separates contraction from expansion since September 2024.

The latest survey was conducted between 12 and 25 November, closing before the Autumn Budget.

S&P Global said manufacturers benefited from improved domestic demand and a softer contraction in new export work.

Rob Dobson, director at S&P Global Market Intelligence, said: "The numbers are especially encouraging as this improvement occurred despite November seeing elevated levels of business uncertainty, and in some cases an element of gloom, ahead of the Autumn Budget.

"The lifting of this uncertainty caused by the long lead-in to the Chancellor's budget announcement should hopefully provide a boost in December, but it will be interesting to see the extent to which business might react to the absence of any significant growth-promoting measures. After all, despite the improvement in the performance of the manufacturing sector, any growth is still worryingly weak.

"Rising competitive pressures and slower cost inflation meanwhile led to factory gate prices being cut for the first time in over two years. This combination of soft industrial performance and subsiding price pressures will add to the shift in policy debate away from inflation fears towards supporting economic growth."