The º£½ÇÊÓƵ economy experienced a glimmer of "hope" in October as manufacturing sprang back to life, bringing an end to a year-long decline.
The latest 'flash' PMI from S&P Global revealed business activity leapt to a two-month peak of 51.1, climbing from 50.1 in September, as reported by .
This expansion was fuelled by a dramatic recovery in the manufacturing sector, which reached a 13-month pinnacle of 51.2, soaring from just 45.7 the previous month.
Nevertheless, the economy remained delicate, hovering barely above the 50 threshold that signals sectoral growth.
Chris Williamson, chief business economist at S&P, commented: "October's flash º£½ÇÊÓƵ PMI survey brings hope that September was a low point for the economy from which business conditions are starting to improve."
"Output has picked up, with a particularly welcome return to growth for manufacturing for the first time in over a year accompanied by an upturn in demand for services, notably among consumers."
Williamson noted that redundancies had "moderated" whilst price pressures returned to "back to levels consistent" with the Bank of England's two per cent target.
Jaguar Land Rover hands economy boost
The resumption of operations at Jaguar Land Rover (JLR) following a cyber assault that paralysed activities offered a "helping hand".
JLR was compelled to suspend manufacturing for five weeks from 1 September, which has been estimated to have cost the º£½ÇÊÓƵ approximately £1.9bn. Research from the non-profit Cyber Monitoring Centre (CMC), which monitors significant cyber incidents, has revealed that approximately 5,000 organisations nationwide were impacted by the aftermath of the attack.
Jaguar Land Rover only partially resumed º£½ÇÊÓƵ operations earlier this month and is not anticipated to fully recover until January 2026.
Despite an increase in manufacturing, Williamson cautioned that goods exports continued to decline "at a worryingly steep rate" due to the US tariff offensive.
President Donald Trump has maintained his assaults on trade partners throughout the government shutdown, threatening this month to impose an additional 100 per cent tax on Chinese imports by 1 November.
In other news, Williamson stated that companies were "treading cautiously" ahead of the autumn Budget, where Rachel Reeves is expected to implement tax increases amounting to £30bn.
He further noted that the outcome of the next fiscal event would "sway the business mood in the months ahead".
