S&P Global Market Intelligence: UK Manufacturing Shows Resilience as Supply Chain Disruptions Add to Inflation Pressure

According to Jin10, S&P Global Market Intelligence Director Rob Dobson said data showed UK manufacturing remained resilient on the eve of the autumn budget: output and new-order growth accelerated in October as companies responded positively to improving domestic and overseas demand, with new orders coming from the EU and the United States. Concerns about potential policy changes had begun to affect the labor market; after hiring increased for six consecutive months, employment growth stalled. The rest of 2026 will be a key period for assessing whether the confirmed minimum-wage increase next year continues to pressure employment trends. Labor costs were rising while the overall cost environment was already elevated, and supply-chain disruptions and delays continued to add to inflationary pressure. Fuel, energy and transport costs also climbed. As a result, October input-price inflation was among the highest levels of the past four years. Combined with manufacturing’s resilience, this increased the likelihood of future Bank of England rate hikes.