Thriving or Surviving? The Manufacturing Sector Health Check – March 2026

As we approach the end of the financial year, let’s examine the impact the last month has had on the manufacturing sector. Our regular ‘Thriving or Surviving?’ update compares key figures against those of the wider UK economy, based from data from the Office of National Statistics (ONS).

So without further ado, let’s find out if the sector is surviving or thriving…

GDP (January 2026)

The GDP for manufacturing has increased by a tenth of a point to 101.4. The UK as a whole remained at 102.6 since December 2025.

The three sub-sectors of manufacturing that demonstrated the largest growth in the last month are:

Sub-sector	Growth (%)
Manufacture of other transport equipment	5.6%
Manufacture of electrical equipment	4.9%
Manufacture of air and spacecraft and related machinery	4.8%

Employment and vacancies (for February 2026)

The reported figure for paid employees in manufacturing remains at 2.3 million, with a small drop of about 3,800 (0.17%).

The number of UK employees increased by 20,000 to 30.34 million – an increase of 0.07% on last month’s stats.

There was a fall in manufacturing vacancies in February, down 3,000 to 49,000 – a drop of 5.77%. In the same period, the UK as a whole experienced a decrease in vacancies of 9,000 (1.23%).

Wages and payroll (for January 2026)

Manufacturing mean pay increased by £15 to £3,706 – a rise of 0.41%. The UK overall saw a stronger increase of £46 (1.35%) to £3,461.

In terms of aggregate pay, the UK as a whole increased by 1.36% to £104.9 billion per month. The manufacturing sector also increased, albeit at a smaller rate of 0.25%, to £8.53 billion per month.

Exports and Production (for January 2026)

Exports increased by 10.6% in January, a large boost on the figure for December.

The three manufacturing sub-sectors exhibiting the largest export growth in January were:

Sub-sector	Growth (%)
Manufacture of alcoholic beverages and tobacco	29.6%
Manufacture of textiles	21.7%
Processing and preserving of fish, crustaceans, molluscs, fruit and vegetables	21.6%

UK Production Values (for January 2026)

The three sectors recording the largest growth in production value in January were:

Sub-sector	Growth (%)
Manufacture of leather and related products	33.4%
Manufacture of other chemical products	33.3%
Manufacture of dyestuffs and agro-chemicals	28.5%

Meanwhile, these were the three sectors which showed the largest decrease in production value during January:

Sub-sector	Decrease (%)
Repair and maintenance of aircraft and spacecraft	-44.0%
Manufacture of computer, electronic and optical products	-27.2%
Manufacture of alcoholic beverages and tobacco	-25.1%

Our take on the latest ONS data

Despite navigating mixed conditions, the manufacturing sector has kicked off 2026 displaying some clearer signs of stabilisation.

The sector’s GBP growth contrasted against the UK’s stalling at 102.6 is a modest divergence that suggests manufacturing is holding strong in difficult conditions.

A decline in manufacturing employment versus UK figures’ increasing, plus vacancies falling across both manufacturing and the UK as a whole suggests slight contraction within the sector, rather than the churn we’ve been seeing for the last few months.

The strong performance of exports in January – up by over 10% – underscores external demand as a key short-term support factor.

The manufacturing sector is experiencing strong headwinds, with the latest data showing continued stability and momentum clustered in specific high-value areas. The centre of gravity remains cautious but things are improving – what we would call survival with flashes of resilience.

What do you make of the latest data? Is the sector Thriving or Surviving? Check out the latest developments on our LinkedIn page, and read our take on the previous 12-period in the year-on-year update.

Thriving or Surviving? 2025 edition