Manufacturing: Key Economic Indicators

Manufacturing is one of the production industries, which also include mining, electricity, water & waste management and oil & gas extraction.

In October–December 2023, the manufacturing sector accounted for 9.3% of total UK economic output (Gross Value Added) and 8.1% of employment.

Manufacturing Output

Manufacturing output increased by 1.1% between May and June 2024 following an increase of 0.4% between April and May.

Manufacturing output for the three months to June 2024 was 0.6% lower than in the three months to March 2024.

Output in the three months to June 2024 was 0.5% lower than output in the same period the previous year. Nine of the 13 subsector saw increases in output between May and June.

Purchasing Managers’ Index (PMI)

In the S&P Global/CIPS PMI, a value of 50 means that there is no change compared to the previous month. Values above 50 indicate an expansion, and values below 50 a contraction.

The UK manufacturing PMI (PDF) for August 2024 was 52.5, up from 52.1 in July, pointing to four consecutive months of growth. Output, new orders and employment were all up again, with new orders driven by domestic demand. Business confidence was positive with respondents pointing to improved sales, reduced political uncertainty and the prospect of interest rate cuts. However, inflation remained high linked to higher shipping and raw materials costs.