Manufacturing output rose for the first time in 12 months in October, driven by production resuming at Jaguar Land Rover (JLR) plants following a cyber attack, new data has shown.
Whilst overall º£½ÇÊÓƵ manufacturing sector activity remained in decline, the pace of the slowdown eased considerably during October.
The S&P Global º£½ÇÊÓƵ manufacturing PMI survey, closely monitored by economists, registered a reading of 49.7 in October, up from 46.2 in September. Any figure above 50 signals expansion whilst any score below indicates contraction.
Sector data revealed that production volumes were notably stronger in the consumer and intermediate goods categories.
This included gains for certain manufacturers connected to the automotive sector who benefited from JLR's phased production restart.
The company resumed operations at all its facilities, including plants in Solihull and Halewood, in mid-October after shutting down when its systems were compromised on August 31.
Rob Dobson, director at S&P Global Market Intelligence, said this will consequently "provide only a temporary spike in production".
He added: "The October PMI survey shows º£½ÇÊÓƵ manufacturing production rising for the first time in a year, which is a positive in itself.
"However, there are real concerns that the bounce could prove short-lived.
"Sluggish demand from both domestic and overseas markets meant October's output growth was dependent on firms eating into backlogs of orders placed in prior months and allowing unsold stock to accumulate."
Companies reported that "tough" market conditions were behind the fall in both domestic and international demand.
New export orders have now declined for the 45th month in a row, with businesses citing weak demand from the US, EU, Asia and the Middle East as tariff uncertainties continue to weigh on operations.
Manufacturing companies, which represent approximately 9% of the º£½ÇÊÓƵ economy, also highlighted muted domestic demand amid pre-Budget caution, with concerns over potential tax changes.
Workforce numbers fell for the 12th straight month as manufacturers looked to keep costs under control.
Elliott Jordan-Doak, senior º£½ÇÊÓƵ economist at Pantheon Macroeconomics, said: "We think a good chunk of the jump in the PMI in October reflects the resumption of car production following the JLR cyber attack.
"Bottom line, a reopening of business will always boost growth temporarily, so we take the one-year high in the manufacturing PMI with a pinch of salt.
"We think activity will struggle in the coming months as tariff ructions continue to hit global trade."
