The final factory Purchasing Managers’ Index rose to 48.0 in July from 47.7 in the previous month. The flash score was 48.2. The reading signaled contraction in each of the past ten months.
S&P Global Market Intelligence Director Rob Dobson said, the UK manufacturing sector is starting to send some tentatively encouraging signals.
‘However, it’s clear that there’s no assured path back to strong growth,’ Dobson added.
The survey showed that manufacturing output shrank for the ninth straight month but the latest fall was only mild.
Incoming new business dropped for the tenth straight month due to weaker confidence and willingness to spend across domestic and overseas markets.
New export orders decreased throughout the last three-and-a-half years in July. The latest fall reflects global tariff uncertainties, ongoing administrative issues post Brexit and rising competition.
Companies reduced employment in July. Job losses were registered for the ninth consecutive month.
Meanwhile, business optimism rose to a five-month high in July, attributed to hopes for a market recovery, new product launches and operational improvements.
Regarding prices, the survey showed that input cost and selling price inflation remained relatively stable in July.
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Story Highlight
– UK manufacturing contraction slowed in July.
– Purchasing Managers’ Index rose to 48.0.
– Business optimism reached a five-month high.
– Job losses continued for ninth consecutive month.
– Input cost inflation remained stable in July.
Full Story
UK manufacturing experienced a slowdown in its contraction during July, with output diminishing at a reduced rate and business optimism reaching its highest level in five months, according to the latest survey from S&P Global. The final reading of the factory Purchasing Managers’ Index (PMI) for July was recorded at 48.0, an improvement from June’s figure of 47.7, while the preliminary estimate stood at 48.2. Despite this increase, it is significant to note that the index has indicated a contraction for ten consecutive months.
Rob Dobson, Director at S&P Global Market Intelligence, remarked that “the UK manufacturing sector is starting to send some tentatively encouraging signals.” However, he cautioned that a return to robust growth remains uncertain. The survey indicates that manufacturing output has declined for nine months in a row, although the latest decrease was only mild.
There has been a persistent drop in new business, now for the tenth month, reflecting a decline in confidence and spending among both domestic and international customers. Export orders have also decreased, marking a continuous decline over the last three and a half years, attributed to global tariff uncertainties, ongoing issues following Brexit, and increased competition.
Employment levels in the sector also saw a decline in July, with job losses recorded for the ninth month straight. In contrast, business optimism has risen, driven by expectations of market recovery, new product introductions, and improvements in operations.
Regarding finance, the survey noted that inflation rates for input costs and selling prices remained relatively stable throughout July, providing some relief amid ongoing economic uncertainties.
