The UK manufacturing sector experienced significant growth in August, with the S&P Global UK Manufacturing Purchasing Managers' Index (PMI) rising to a 26-month high of 52.5, indicating expansion for five of the last six months. This growth was driven primarily by strong domestic demand, which helped offset a continuous decline in export orders that have fallen since early 2022 due to weak demand in Europe and China. Manufacturing production increased for the fourth consecutive month, supported by higher output and new order volumes, while employment saw its strongest growth in over two years. Although input costs continued to rise, the rate of inflation for both input and selling prices showed signs of easing. The positive outlook for the sector is reflected in the fact that 61% of companies expect production to increase over the next year. Despite these gains, challenges remain, including high shipping costs and global uncertainties that affect export performance.