Aerospace boom drives marginal increase in UK manufacturing output as inflation fears rise
21 May 2026 
Manufacturing output increased by 1.4% (£2.2bn) over the last 12 months, reaching £159.4bn 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% (£929m) year-on-year increase in the aerospace (aircraft, spacecraft & related machinery) sector, which delivered output worth £8.6bn in the first three months of 2026.
UK manufacturers also delivered a 2.7% (£701m) increase in food production, a 3.4% (£358m) rise in the value of computer, electronic & electrical products, and 2.0% (£50m) more textiles, apparel & leather products. There were also gains in chemicals & pharmaceutical preparations (output up 1.2%) and alcohol & tobacco production (up 0.7%).
The value of automotive (motor vehicles & 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 £715m year-on-year, this was over £2bn more than in the final quarter of 2025.
Producers of coke & refined petroleum products saw a 12.2% (£278m) 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.”