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Global Highlights
Across the UK, Australia and New Zealand, revenue is down — but margins, inventory and order behaviour are moving in ways that don't follow the script. Construction is collapsing while some margins hold. Personal care is growing despite the cost squeeze. Energy manufacturers are reading the same market and reaching opposite conclusions. This is what 1,578 SME manufacturers reveal about the real economy in 2026.
"Global uncertainty isn't going away, but manufacturers don't have to be at the mercy of it. The businesses performing strongest today are the ones focusing on the operational levers they can control." — Jarrod Adam, Head of Product, Unleashed
| Market | Revenue YoY | Gross Margin YoY | Stock on Hand YoY | PO Value YoY | # of Lead Days |
|---|---|---|---|---|---|
| UK | –6% | –10% | –33% | –37% | 16 |
| Australia | –33% | –7% | –60% | –67% | 16 |
| New Zealand | –9% | –4% | –57% | –38% | 14 |
Construction is contracting
Construction manufacturing is contracting across all three markets. Building & Construction revenue is down year-on-year across the UK, Australia and New Zealand, alongside significant inventory reductions. While revenue remains under pressure, margin movements suggest manufacturers are adjusting to weaker market conditions.
Personal care is winning
Personal Care is the only sector recording revenue growth across all three markets — up 32% in the UK, 85% in Australia and 46% in New Zealand. The consistency of growth makes it one of the clearest positive trends in the April–June 2026 data. When the same sector outperforms in three different countries at the same time, it's worth paying attention.
Energy strategy is splitting by region
UK energy manufacturers are ordering aggressively, revenue is up +72% YoY, purchase orders up +96% in a single quarter (although down 44.31% YoY). New Zealand is selling well (+18% YoY) but quietly cutting orders and stripping stock. Australia has pulled back entirely: revenue down –33% YoY, orders cut –45% QoQ. Same global commodity. Three completely different reads on what comes next.
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UK Manufacturing Data: April–June 2026
UK manufacturing faced a challenging quarter, with UK manufacturing revenue declining across several key sectors. Against a backdrop of weaker construction activity, cautious business investment and continued cost pressures, the latest MHI data reveals a sharply divided UK manufacturing sector. Construction and capital-intensive industries recorded some of the steepest declines, while personal care emerged as a standout growth sectors.
UK Electrical & Electronic Components
UK electrical and electronic component manufacturers are showing one of the clearest signs of demand weakness in the April–June 2026 data. Revenue has fallen sharply while stock on hand has moved in the opposite direction, creating a potentially difficult inventory position for manufacturers. With gross margins also under pressure, businesses may face increasing pressure to move existing stock without further eroding profitability. Given the sector’s links to construction, housing and capital investment, weaker activity in these markets may be feeding through to component demand.
UK Energy
UK energy manufacturers recorded 72% year-on-year revenue growth, the strongest annual increase of any UK sector in the MHI data. However, the purchasing data presents a more cautious picture: purchase orders jumped 96% quarter-on-quarter, but remain 44% below the same quarter last year. With gross margins also down 3.3% YoY, the data suggests a sector experiencing strong annual revenue growth while manufacturers remain cautious about future demand and profitability.
UK Personal Care
UK personal care manufacturers recorded the strongest revenue growth of any UK manufacturing sector, with revenue up 32% year-on-year. However, gross margins fell 22% and stock on hand declined 42%, suggesting manufacturers are experiencing strong sales while operating with leaner inventory and tighter profitability. The combination points to strong demand, but also increasing pressure on margins and stock availability.
UK April-June 2026 Regional Data
| Sector | Revenue Apr–Jun 2026 (£) | Revenue QoQ% | Revenue YoY% | Gross Margin% | GM QoQ% | GM YoY% |
|---|---|---|---|---|---|---|
| All Industries | £344,058 | 37% | -6% | 35% | 13% | -10% |
| Beverages | £362,362 | 39% | 20% | 30% | 34% | 14% |
| Building & Construction | £215,527 | 3% | -48% | 37% | 19% | 13% |
| Clothing, Footwear & Accessories | £321,672 | 16% | -33% | 57% | 63% | -10% |
| Electrical & Electronic Components | £134,341 | -11% | -61% | 27% | -17% | -30% |
| Electronics & Telecom | £262,771 | -27% | -35% | 29% | 10% | -36% |
| Energy & Chemicals | £841,889 | 121% | 72% | 28% | -25% | -3% |
| Food | £520,783 | 39% | 4% | 26% | -26% | -10% |
| Furniture, Fixtures & Home Furnishing | £140,120 | 52% | -45% | 40% | 15% | -21% |
| Health, Medical Supplies & Equipment | £442,091 | 55% | 58% | 28% | -9% | -36% |
| Industrial Machinery, Raw Material & Equipment | £150,714 | -27% | -57% | 36% | 9% | 10% |
| Personal Care | £320,654 | 59% | 32% | 43% | 68% | -22% |
| Sport, Entertainment & Recreation | £415,768 | 87% | 26% | 37% | 40% | -18% |
| Sector | Stock on Hand (£) | Stock QoQ% | Stock YoY% | PO Value (£) | PO Value QoQ% | PO YoY% | Lead Days | Lead Days YoY% |
|---|---|---|---|---|---|---|---|---|
| Beverages | £165,627 | -3% | 23% | £222,897 | -4% | -44% | 16 | 3% |
| Building & Construction | £155,066 | -42% | -70% | £279,290 | 2% | -31% | 13 | -3% |
| Clothing, Footwear & Accessories | £175,037 | -28% | 18% | £165,758 | 26% | -30% | 20 | -4% |
| Electrical & Electronic Components | £382,337 | 63% | 76% | £90,996 | -21% | -64% | 13 | -6% |
| Electronics & Telecom | £109,614 | -35% | -45% | £108,240 | -50% | -29% | 15 | -2% |
| Energy & Chemicals | £194,026 | -7% | -57% | £463,307 | 96% | -44% | 15 | -5% |
| Food | £181,940 | -55% | -57% | £338,985 | -10% | -27% | 17 | -2% |
| Furniture, Fixtures & Home Furnishing | £78,346 | -23% | -51% | £89,733 | -3% | -50% | 18 | -6% |
| Health, Medical Supplies & Equipment | £129,380 | -31% | -29% | £119,018 | -36% | -39% | 18 | -2% |
| Industrial Machinery, Raw Material & Equipment | £268,634 | 83% | -5% | £121,025 | -46% | -56% | 16 | -3% |
| Personal Care | £121,722 | 34% | -42% | £117,714 | -19% | -29% | 19 | -2% |
| Sport, Entertainment & Recreation | £268,336 | 72% | -24% | £96,591 | -17% | -62% | 16 | -5% |
Australia Manufacturing Data: April–June 2026
Australian manufacturing entered July 2026 against a backdrop of slowing economic activity, persistent cost pressures and tighter financial conditions. The MHI data shows a sharply divided Australian manufacturing sector, with revenue declining across several major industries, while Personal Care recorded the strongest growth in the dataset. Overall, the data points to manufacturers taking very different approaches to demand, inventory and purchasing as operating conditions become more challenging.
AU Food
Australian food manufacturers recorded 32% year-on-year revenue growth in April–June 2026, but stronger sales are coming alongside tighter margins and significantly leaner inventory. Gross margin fell 3% YoY to 25.16%, while stock on hand dropped 63% YoY. Purchase orders increased 22% QoQ, suggesting manufacturers are beginning to replenish after a period of destocking.
"Inventory should be one of your greatest competitive advantages, not a hidden liability. When supplier lead times aren't configured correctly, businesses risk making purchasing decisions based on outdated or inaccurate information, leading to costly stockouts, excess inventory and unnecessary pressure on cash flow." — Jarrod Adam, Head of Product, Unleashed.
AU Personal Care
Australian personal care manufacturers are the standout performer in the MHI data, with revenue up 85% year-on-year — the strongest growth of any sector across all three markets. Stock on hand also increased 25% YoY, while gross margin was relatively stable at –4% YoY. Purchase orders fell 29% YoY, creating an interesting gap between strong sales, higher inventory and lower purchasing activity.
Industrial Machinery
Australian industrial machinery manufacturers recorded a 50% year-on-year decline in revenue, while stock on hand fell 79% YoY — the largest annual inventory decline in eight years of Australian MHI data. Purchase orders also fell 57% YoY, pointing to a significant pullback in activity and cautious expectations for future demand.
The trend reflects a more cautious investment environment across Australian industry, as businesses balance weaker demand, cost pressures and economic uncertainty when making spending decisions.
Australia April-June 2026 Regional Data
| Sector | Revenue Apr–Jun 2026 (A$) | Revenue QoQ% | Revenue YoY% | Gross Margin% | GM QoQ% | GM YoY% |
|---|---|---|---|---|---|---|
| All Industries | $385,395 | 8% | -33% | 34% | 2% | -7% |
| Beverages | $447,665 | 31% | -27% | 34% | 10% | 7% |
| Building & Construction | $352,711 | -10% | -44% | 28% | 7% | -19% |
| Clothing, Footwear & Accessories | $207,594 | 20% | -55% | 28% | -14% | -36% |
| Electrical & Electronic Components | $365,342 | -21% | -50% | 35% | 11% | -6% |
| Electronics & Telecom | $415,387 | -11% | -50% | 38% | 34% | 7% |
| Energy & Chemicals | $424,750 | -18% | -33% | 31% | -10% | -17% |
| Food | $679,233 | 50% | 32% | 25% | -29% | -3% |
| Furniture, Fixtures & Home Furnishing | $238,712 | -10% | -60% | 43% | 9% | 17% |
| Health, Medical Supplies & Equipment | $369,165 | 0% | -45% | 28% | -28% | -39% |
| Industrial Machinery, Raw Material & Equipment | $409,323 | -13% | -50% | 31% | -5% | -10% |
| Personal Care | $333,523 | 71% | 85% | 46% | 40% | -4% |
| Sport, Entertainment & Recreation | $381,329 | 125% | 76% | 37% | 22% | -19% |
| Sector | Stock on Hand (A$) | Stock QoQ% | Stock YoY% | PO Value (A$) | PO QoQ% | PO YoY% | Lead Days | Lead Days YoY% |
|---|---|---|---|---|---|---|---|---|
| All Industries | $185,134 | -11% | -60% | $170,706 | -29% | -67% | 16 | -3% |
| Beverages | $127,017 | -18% | -24% | $252,283 | 1% | -22% | 13 | -1% |
| Building & Construction | $249,598 | -34% | -35% | $301,452 | -9% | -50% | 14 | -5% |
| Clothing, Footwear & Accessories | $164,120 | 43% | 8% | $162,302 | 3% | -41% | 15 | -9% |
| Electrical & Electronic Components | $145,015 | 5% | -72% | $278,966 | 52% | -51% | 16 | -8% |
| Electronics & Telecom | $273,049 | 71% | -23% | $253,980 | 16% | -60% | 21 | -2% |
| Energy & Chemicals | $176,763 | -21% | -64% | $220,882 | -45% | -65% | 14 | -4% |
| Food | $224,364 | -11% | -63% | $411,118 | 22% | -40% | 13 | -1% |
| Furniture, Fixtures & Home Furnishing | $166,901 | 2% | -70% | $235,660 | 36% | -58% | 20 | -4% |
| Health, Medical Supplies & Equipment | $167,148 | -5% | -47% | $246,063 | 106% | -51% | 15 | -3% |
| Industrial Machinery, Raw Material & Equipment | $180,036 | -57% | -79% | $335,219 | -17% | -54% | 14 | -6% |
| Personal Care | $210,076 | 16% | 25% | $186,820 | 13% | -29% | 17 | -4% |
| Sport, Entertainment & Recreation | $137,517 | 8% | -51% | $199,910 | 43% | -38% | 19 | -5% |
New Zealand Manufacturing Data: April–June 2026
New Zealand manufacturers left April–June 2026 in a subdued operating environment, with manufacturing activity slipping back into contraction amid weaker demand and higher costs. Construction remains a particular pressure point, with activity falling and 551 fewer building and construction businesses operating at the end of 2025. Against this backdrop, the MHI data reveals a sharply divided manufacturing sector, with construction-related industries contracting while Health, Beverages and Personal Care are recording strong revenue growth.
Building & Construction
New Zealand building and construction manufacturers are showing significant signs of contraction, with revenue down 41% year-on-year and stock on hand falling 72%. Purchase orders remain 47% below last year, despite increasing 29% quarter-on-quarter, suggesting some tentative restocking from a much lower base.
The data reflects continued weakness across New Zealand construction, where residential and non-residential building activity has declined even as the pipeline of new-home consents has started to improve.
Health
New Zealand health manufacturers are a standout in the April–June 2026 MHI data, with revenue up 55% year-on-year and gross margins up 11% — one of only two NZ sectors recording growth in both. However, purchase orders fell 62% YoY, suggesting manufacturers remain cautious about future purchasing despite strong current performance.
The growth comes as New Zealand’s wider health sector remains relatively resilient, with health care and social assistance recording some of the strongest employment and earnings growth in the economy.
Beverages
NZ beverages manufacturers are one of the market's bright spots — revenue up 54% year-on-year in a broadly contracting market. But stock on hand has been stripped 53% YoY, and purchase orders are down 28% QoQ. Manufacturers are selling faster than they can replenish. If demand holds at current levels, a supply crunch may follow in the second half of 2026
New Zealand April-June 2026 Regional Data
| Sector | Revenue Apr–Jun 2026 (NZ$) | Revenue QoQ% | Revenue YoY% | Gross Margin% | GM QoQ% | GM YoY% |
|---|---|---|---|---|---|---|
| All Industries | $170,706 | 88% | -9% | 35% | 10% | -4% |
| Beverages | $247,026 | 126% | 54% | 25% | -4% | 2% |
| Building & Construction | $197,144 | 26% | -41% | 34% | 8% | -14% |
| Clothing, Footwear & Accessories | $128,706 | 50% | 111% | 22% | -49% | -65% |
| Electrical & Electronic Components | $206,388 | 64% | -16% | 39% | 29% | -10% |
| Electronics & Telecom | $278,039 | 169% | -59% | 24% | -18% | -12% |
| Energy & Chemicals | $421,283 | 75% | 18% | 31% | 6% | -21% |
| Food | $161,985 | 10% | -27% | 21% | -31% | 3% |
| Furniture, Fixtures & Home Furnishing | $154,730 | 60% | -20% | 41% | 64% | -16% |
| Health, Medical Supplies & Equipment | $381,110 | 201% | 55% | 40% | 44% | 11% |
| Industrial Machinery, Raw Material & Equipment | $248,761 | 201% | -17% | 42% | 14% | 6% |
| Personal Care | $293,643 | 186% | 46% | 53% | 63% | -5% |
| Sport, Entertainment & Recreation | $206,374 | 59% | -4% | 46% | 27% | 37% |
| Sector | Stock on Hand (NZ$) | SOH QoQ% | Stock YoY% | PO Value (NZ$) | PO QoQ% | PO YoY% | Lead Days | Lead Days YoY% |
|---|---|---|---|---|---|---|---|---|
| All Industries | $113,836 | -8% | -57% | $170,706 | 11% | -38% | 16 | -3% |
| Beverages | $100,736 | -28% | -53% | $181,314 | -2% | -10% | 10 | 5% |
| Building & Construction | $96,692 | -34% | -72% | $221,125 | 29% | -47% | 16 | -3% |
| Clothing, Footwear & Accessories | $13,413 | -61% | -77% | $117,049 | 32% | 113% | 16 | -4% |
| Electrical & Electronic Components | $101,810 | -3% | -62% | $127,932 | 25% | -57% | 19 | -5% |
| Electronics & Telecom | $116,390 | -13% | -79% | $235,361 | 55% | -50% | 13 | -10% |
| Energy & Chemicals | $117,445 | -27% | -61% | $169,308 | -27% | -53% | 10 | -9% |
| Food | $213,262 | -25% | 1% | $329,533 | 19% | -29% | 12 | -5% |
| Furniture, Fixtures & Home Furnishing | $152,852 | 10% | -44% | $125,512 | -30% | -55% | 17 | -7% |
| Health, Medical Supplies & Equipment | $138,641 | 26% | -6% | $89,338 | -11% | -62% | 17 | -1% |
| Industrial Machinery, Raw Material & Equipment | $98,363 | -4% | -73% | $205,393 | 18% | -48% | 15 | -1% |
| Personal Care | $133,306 | 182% | 58% | $101,470 | 20% | -38% | 17 | -4% |
| Sport, Entertainment & Recreation | $83,128 | 3% | -75% | $145,134 | 36% | -47% | 13 | 2% |
"Environmental factors can quickly affect input costs and margins, so purchasing may need to be more conservative, supply contingency needs to be built in, and stock decisions should be backed by accurate, real-time data. The businesses that perform strongest are the ones that understand where stockouts will have the biggest commercial impact and manage those risks deliberately."
About the report
Anonymised, aggregated transaction data from SME manufacturers using the Unleashed platform. Sales Revenue figures are quarterly snapshots (April–June 2026). Stock on Hand and Purchase Order figures are 12-month rolling averages. Year-on-year comparisons are April–June 2026 vs April–June 2025.
Small cohort advisory: Sectors with fewer than 25 businesses are flagged throughout. NZ Clothing (n=6) has been excluded entirely. Findings from small cohorts should be interpreted with caution.
Data period: April–June 2026 Cohort: 1,578 SME manufacturers · UK, Australia, New Zealand · 12 sectors · 8 years of historical data
About Unleashed
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Ready to see Unleashed in action? Watch a free 15-minute demo here – or learn more about manufacturing inventory management with Unleashed below.
Previous reports
A brief summary of our previous Manufacturing Health Index reports.