The data
The S&P Global UK Manufacturing PMI came in at 51.7 in August 2026, down slightly from 51.9 in July. That marks the tenth consecutive month of expansion, but at the slowest rate since March, as growth in both output and new orders lost momentum.
The mixed signals underneath the headline
Despite the slowdown, job creation reached a two-year high and business optimism rose to a six-month high, while average purchase price inflation slowed for a third consecutive month. The sector is decelerating but not contracting, and cost pressure is easing even as growth softens.
What this means for procurement planning
Slowing price inflation gives procurement teams a genuine window to renegotiate supplier terms that were locked in during the sharper cost increases of the past two years. Combined with rising hiring confidence, this is a period to test the market rather than simply renew existing agreements.
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