S&P Global Market Intelligence director Rob Dobson says UK manufacturing showed
resilience ahead of the autumn budget: October output and new orders accelerated
as firms responded to improving domestic and overseas demand, with new orders
from the EU and US. After six months of rising hiring, employee growth has
stalled amid concern about potential policy changes; the remainder of 2026 will
be key to see whether a planned rise in next year’s minimum wage continues to
pressure employment. Rising labour costs, intensifying supply‑chain shocks and
delays, and higher fuel, energy and transport costs pushed October input prices
to one of their fastest increases in four years. Combined with manufacturing
resilience, these trends will raise the likelihood of further Bank of England
rate hikes.
