British manufacturing output rose for the third consecutive month in June, according to new data from the Office for National Statistics, as improving export demand and easing input costs gave factory owners reason for cautious optimism. See also: British manufacturers report strongest order books in two years as export demand rebounds.
The ONS reported a 0.6 per cent month-on-month increase in manufacturing production, led by growth in the automotive, aerospace, and food processing sectors. Total output is now 1.8 per cent above where it stood in March, marking the strongest quarterly expansion since late 2024.
“We are seeing genuine momentum in order books, particularly from European and North American buyers,” said Dr Samantha Kerr, chief economist at the Manufacturing Technologies Association. “The currency tailwind from sterling’s modest depreciation has helped, but the underlying story is one of productivity gains and supply chain resilience.”
Export orders, which had been sluggish through much of 2025, grew 2.1 per cent in the three months to June. The improvement was broad-based, with chemicals, machinery, and transport equipment all posting gains. Domestic demand remained flat, however, suggesting the recovery is being driven primarily by overseas markets.
Business investment in plant and machinery also ticked upward, rising 0.9 per cent quarter-on-quarter. Analysts said the figures reflected growing confidence that the Bank of England’s rate-cutting cycle, expected to resume later this summer, would lower financing costs for capital expenditure.
Not all indicators were positive. The construction materials sector continued to contract, and manufacturers in energy-intensive industries warned that electricity prices remain uncompetitive by European standards. Industry body Make UK called on the government to extend the super-deduction capital allowance beyond its current expiry at the end of 2027.
“The trajectory is encouraging, but we are not out of the woods,” said Make UK chief executive Stephen Phipson. “Sustained growth requires a stable policy environment, particularly around energy costs and trade facilitation.” The next set of PMI data, due in early August, will provide a clearer picture of whether the current momentum can be maintained into the autumn.