UK manufacturing output grew for a fourth consecutive month in July, expanding at its fastest pace in almost two years, according to a closely watched industry survey. The S&P Global purchasing managers' index (PMI) showed factories in an upbeat mood, buoyed by rising domestic and export orders, even as they remained wary of a prolonged Middle East conflict that could disrupt oil and gas supplies and push up production costs. The improvement marks a notable turnaround after a difficult period for the sector, which had been hit hard by Donald Trump's "liberation day" tariffs and, separately, by a cyber-attack on Jaguar Land Rover that halted production at the UK's largest carmaker.

The PMI eased slightly to 51.9 in July from 52.5 in June, though any reading above 50 signals expansion, and it has now stayed in growth territory for nine straight months. New orders rose for an eighth successive month, with firms reporting smoother global supply chains and fresh export demand from the US, Canada, the EU, mainland China, India and South Korea. However, hiring barely increased, with staff growth at its weakest point of the current upturn, and analysts including S&P Global's Rob Dobson and the Item Club's Matt Swannell offered mixed outlooks, citing hopes that backlogs will spur recruitment alongside caution about the months ahead.