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UK manufacturing growth picks up as Trump tariff chaos eases

UK manufacturing growth picks up as Trump tariff chaos eases

Summary

UK manufacturing grew faster in July, marking the fourth month of steady production increases, helped by more orders from home and abroad. However, the sector remains cautious due to rising energy costs and worries about ongoing conflicts in the Middle East.

Key Facts

  • UK manufacturers increased production in July at the fastest pace in nearly two years.
  • The sector has expanded for nine months in a row, with new orders rising for eight consecutive months.
  • Growth was supported by more orders from countries including the US, Canada, EU, China, India, and South Korea.
  • Employment growth slowed, showing uncertainty in the labor market despite production gains.
  • Past disruptions included tariffs introduced by President Trump in 2025 and a cyberattack on Jaguar Land Rover last autumn.
  • Higher oil and gas prices due to Middle East conflicts are expected to raise production costs.
  • Experts warn that energy price rises and inflation may reduce demand later in the year.
  • Some industry leaders welcome government efforts to support training and skills development in manufacturing.
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