Business News Round Up (19/10/2026)
UK manufacturing drives unexpected economic rebound
UK manufacturing provided a significant boost to economic growth in August, as a sharp rise in factory output helped the economy outperform expectations and avoid a contraction. Manufacturing output increased by 1.2% month on month, according to the latest figures from the Office for National Statistics (ONS). The increase helped drive a 0.8% rise in total production output, which includes manufacturing, mining and quarrying, energy supply, and water and waste management. UK gross domestic product (GDP) grew by 0.1% in August, defying economists’ expectations of a 0.1% contraction. Services output was unchanged over the month, while construction output fell by 0.2%. The figures, published on 15 October, suggest manufacturing provided an important source of resilience for the UK economy, although the sector’s performance over the wider three-month period remained more subdued.
https://www.themanufacturer.com/articles/uk-manufacturing-drives-unexpected-economic-rebound
Eight-in-10 UK CEOs do not have comprehensive view of AI ROI
AI is driving significant productivity gains across UK businesses, but further action is needed to translate these gains into measurable business value, according to new research from EY-Parthenon. The firm’s latest CEO Outlook Survey suggests that even as half of bosses say AI-enabled tools are contributing to productivity gains, less than a fifth have comprehensive visibility on the technology’s costs and returns. In September 2026, EY conducted an anonymous online survey of 1,200 CEOs from large companies, aiming to provide insights on the main trends and developments impacting the world’s leading companies and business leaders’ expectations for future growth and long-term value creation. Respondents represented 21 countries, including the US, Canada, Brazil, the Netherlands, Australia and the UK. At a time when businesses continue to struggle to demonstrate their returns on growing investments into AI, the global findings suggest that bosses must act, to translate gains into measurable business value.
Profit warnings hit near two-year high as costs bite
Profit warnings issued by businesses quoted on the London Stock Exchange reached a near two-year high in the recent quarter as they continue to come under pressure from rising costs. The research from EY shows that 65 public firms issued downgrades in the three months to the end of September, compared with 59 during the previous quarter. It marks the highest figure since Q4 2024, when 71 warnings were released and comes ahead of the first Budget to be delivered by John Healey. The Chancellor’s focus is expected to include further measures to help smaller companies in the private sector, such as pubs and restaurants. Geopolitical instability and policy shifts were identified as the primary drivers of profit warnings, featured in 54% of cases over the third quarter, while 38% cited the fallout from the ongoing conflict in the Middle East.
North West businesses ready to invest in young people but need better access to talent
Three-in-five North West businesses have recruited early careers talent in the past year, according to new research from Lloyds, while firms have called for better access to suitable candidates to help them invest. The latest Lloyds Business Barometer has found that of those who recruited last year, 95% plan to continue investing in talent in the year ahead, with only London and the Southeast recording higher figures in the UK. When asked what factors would most increase their confidence to invest specifically in early careers talent, employers highlighted access to people and information. A third identified better access to suitable candidates as the primary catalyst, while 28% cited better information on the support that’s available. Nearly a quarter also reported that finance to smooth their cashflow until training pays back, simpler apprenticeship and training schemes and finance to manage the upfront costs would increase their confidence to invest in early.