Back to today’s briefing

Story perspectives

UK Manufacturing PMI Rises Amid Tax Hike Concerns

1/3/2026

34 4

Summary

Story summary

The U.K. manufacturing PMI rose to 50.6 in December, the fastest in 15 months, but below the initial 51.2 estimate.
Stock-building helped growth, despite confidence falling after finance minister Rachel Reeves announced a budget with £26 billion of tax hikes.
New orders rose modestly for the first time since September 2024.
Business optimism declined because inflation rose due to higher labor costs from prior tax increases.

1 of 1

Story summary

The U.K. manufacturing PMI rose to 50.6 in December, the fastest in 15 months, but below the initial 51.2 estimate.
Stock-building helped growth, despite confidence falling after finance minister Rachel Reeves announced a budget with £26 billion of tax hikes.
New orders rose modestly for the first time since September 2024.
Business optimism declined because inflation rose due to higher labor costs from prior tax increases.