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UK December final manufacturing PMI 50.6 vs 51.2 prelim

Prior 50.2There is a slight negative revision but it still marks an improvement to November, as the UK manufacturing recovery continues at end of 2025. Of note, both output and new orders nudged higher in helping to see the headline reading post a 15-month high. So, that’s a positive signal at least. However, there was a mild increase in price pressures as input
cost inflation accelerated and output charges rose after
declining in November. S&P Global notes that:“Further signs of growth emanated from the UK
manufacturing sector before the turn of the year. Output
rose for the third successive month and new order
intakes improved, albeit slightly, for the first time since
September 2024. The domestic market remained a
positive spur to growth while new export business, despite
having now fallen for almost four consecutive years, took
a sizeable stride towards stabilising.
“UK manufacturers benefited from several reduced
headwinds towards the end of the year, as the negative
impacts of the uncertainty surrounding the Autumn
Budget, tariffs and the JLR cyber-attack all moderated.
“The start of 2026 will show if growth can be sustained
after these temporary boosts subside. The base of the
expansion needs to shift more towards rising demand
and away from inventory building and backlog clearance.
December’s interest rate cut will hopefully play some part
in assisting this transition, encouraging manufacturers
and their customers to increase spending and investment.
Manufacturers remain uncertain on this score, with
business optimism falling for the first time in three
months in December.”
This article was written by Justin Low at investinglive.com.

🔗 Source

💡 DMK Insight

UK manufacturing hitting a 15-month high is a big deal for traders right now. This uptick in output and new orders could signal a broader economic recovery, which might influence the GBP positively against other currencies. Traders should keep an eye on how this impacts forex pairs like GBP/USD, especially if it leads to speculation about interest rate hikes from the Bank of England. If the GBP strengthens, it could create ripple effects in related markets, such as commodities or equities tied to UK economic performance. But here’s the flip side: if this data is seen as a one-off improvement rather than a trend, we might see a quick reversal. Watch for key resistance levels in GBP/USD around recent highs, and consider how upcoming economic indicators might confirm or contradict this manufacturing data. The next few weeks could be crucial for positioning.

📮 Takeaway

Monitor GBP/USD closely; a sustained break above recent highs could signal further strength in the pound as manufacturing data improves.

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