UK manufacturing output has now expanded for the second straight month in December, marking a turning point for the sector. What's driving this rebound? Businesses appear to be shaking off earlier anxieties about potential tax increases tied to the budget cycle. The consecutive monthly growth suggests stronger demand and improved business confidence beyond market jitters. While headline inflation and policy uncertainty have weighed on sentiment, manufacturing activity is slowly finding its footing. Economic expansions like this matter for asset markets—they signal resilience in traditional sectors and help shape the macro backdrop that influences everything from currency valuations to inflation expectations. Worth keeping an eye on as we head into 2025.