Manufacturers continue to operate in an environment of uncertainty
Richard Powell April 1st 2026
Richard Powell, partner at MHA, comments on today's S&P manufacturing PMI data:
UK manufacturers are continuing to operate in an environment dominated by uncertainty. While the latest S&P UK Manufacturing PMI data remains relatively flat, which is positive news given the uncertain operating environment, many manufacturers will be looking to batten down the hatches. Confidence is fragile, with geopolitical tensions, volatile energy prices and lingering inflationary costs all weighing heavily on decision‑making.
This uncertainty makes it extremely difficult for manufacturers to commit to investment or for funders to feel comfortable supporting longer‑term plans.
For many businesses, the focus is on resilience and simply riding out the storm rather than pursuing growth. Supply chains are also under renewed scrutiny, particularly where there is reliance on the Far East, and any move towards onshoring or alternative energy sources will require sustained, long‑term thinking rather than quick fixes.
"With interest rate cuts currently on hold and wider energy relief not expected until 2027, businesses across the sector are feeling the pinch. These pressures are largely external, rather than a reflection of how companies are being managed, but they will continue to shape the outlook for UK manufacturing in the months ahead."
