MANUFACTURING growth jumped to a two-year high last month amid a post-election surge in activity, according to a report published today.

The sector has now grown for the past three months and is at its highest level since February 2022, the S&P Global UK manufacturing PMI survey says.

New orders have also been strengthened, with factory workforces expanding for the first time in nearly two years.

The survey showed a boost to confidence levels since Labour won the general election in early July.

S&P Global Market Intelligence director Rob Dobson said: “Hopes for an economic revival and reduced political uncertainty took confidence to one of its highest levels for two-and-a-half years, with 60 per cent of companies surveyed now forecasting output will rise over the coming 12 months.”

However, inflationary pressures “remain a blot on the copybook” and the Red Sea crisis and freight problems “are having a severe impact on prices,” he added.