Manufacturing output increased by 1.4% (£2.2 billion) over the last 12 months, reaching £159.4 billion in Q1 2026, according to an analysis of ONS data by
FourJaw Manufacturing Analytics.
However, inflation has dampened these gains, with overall productivity falling by 1% after adjusting for price increases.
Growth in UK manufacturing over the last year was led by a 12.1% (£929 million) year-on-year increase in the aerospace (aircraft, spacecraft and related machinery) sector, which delivered output worth £8.6 billion in the first three months of 2026.
UK manufacturers also delivered a 2.7% (£701 million) increase in food production, a 3.4% (£358 million) rise in the value of computer, electronic and electrical products, and 2.0% (£50 million) more textiles, apparel and leather products. There were also gains in chemicals and pharmaceutical preparations (output up 1.2%) and alcohol and tobacco production (up 0.7%).
The value of automotive (motor vehicles and trailers) manufacturing was 3.3% lower in Q1 2026 than in Q1 2025, with output worth £21bn in the first three months of 2025. Although down by £715 million year-on-year, this was over £2 billion more than in the final quarter of 2025.
Producers of coke & refined petroleum products saw a 12.2% (£278 million) decline in output despite a 14.6% rise in prices in March. After 19 months of falling prices, this sector appears to be the first hit hard by hostilities in the Middle East, which contributed to a 58.3% increase in crude oil prices.
Official figures suggest there are 50,000 fewer people working in UK manufacturing than a year ago, and that output per worker has risen by 3% in the last 12 months due to efficiency gains.
Chris Iveson, CEO at FourJaw Manufacturing Analytics, said: “These are turbulent times, and that makes growth a big challenge for the manufacturing base as a whole. The sharp rises in energy prices we’ve witnessed since March are a major concern to manufacturers and are forcing even greater focus on efficiency and productivity to maintain profitability.
“The human instinct is often to look at cutting costs first, missing the opportunity to get more out of their resources and drive ruthless efficiency, which is a more strategic pivot to deliver long-term resilience.
“The good news is that significant parts of the UK manufacturing sector are growing, and there are opportunities out there for those agile enough to seize them. Across the sector, whether they are growing or not, we see manufacturers embracing technology to drive efficiency and getting much smarter about how they keep their lines running.”
Founded in 2020 as a spinout from the University of Sheffield’s Advanced Manufacturing Research Centre, FourJaw is a UK-based SaaS company helping manufacturers enhance productivity, reduce energy usage and grow profitably.