The UK food and drink manufacturing sector recorded the fastest output growth of all sectors for the fourth consecutive month, newly released figures show.
According to the latest Lloyds UK Sector Tracker, food and drink manufacturing rose from 65.3 to 66.1 in September.
The Tracker, which uses exclusive PMI data to track the performance of 14 sectors of the UK economy, also revealed this was despite slower demand growth (53.6 vs. 66.5 in September). Businesses were surveyed between 10 and 29 October.
Food and drink producers saw input costs rise at the slowest rate (55.0) since March 2024. As a result, they also slowed the rate at which they raised prices charged to customers (50.5 vs. 58.4), which includes supermarkets and retailers.
Firms in the sector also hired staff at their fastest pace on record (59.7 in October vs. 50.7 in September), since January 1998 when the Tracker began.
A reading on the Tracker above 50.0 indicates expansion, while a reading below 50.0 indicates contraction.
Aled Patchett, Head of Consumer at Lloyds, said: “This month’s Tracker reflects the determined optimism of the businesses that we speak to in the sector, as we head into one of the busiest times of the year.
“Branding and positioning are more important than ever as consumers think more actively about the composition of their food and drink spend, and they are increasingly looking for nutrition and convenience. Businesses are also keeping a close eye on the possible impact on supply chains caused by recent global weather impacts. The sector sees some challenges ahead, but businesses continue to work hard to navigate their way through them.”
For more articles like this, visit our Leadership channel
