The UK’s manufacturing sector remained firmly in expansion territory in June, although growth eased slightly from May’s four-year high. The S&P Global UK Manufacturing PMI slipped from 53.9 to 52.5, below the earlier flash estimate of 53.1, while extending the current expansion to eight consecutive months. Factory output continued to grow at its fastest pace since September 2024, highlighting the sector’s resilience despite a modest loss of momentum.
According to S&P Global’s Rob Dobson, manufacturers continue to benefit from strategic stockpiling by customers seeking to protect themselves against supply-chain disruptions and future price increases. However, he warned that “a drop in the rate of growth of new work intakes suggests this boost is already starting to fade.” Business optimism also remained subdued, with many firms citing geopolitical tensions and uncertainty over future government policy as reasons for caution.
Inflation pressures presented a mixed picture. Input cost inflation remained elevated as supply-chain strains led to raw material shortages and higher supplier charges. At the same time, the recent decline in energy prices helped slow the overall pace of cost inflation, allowing factory selling price inflation to moderate as well. The survey suggests manufacturers are still benefiting from temporary inventory-related demand, but sustaining the recovery will increasingly depend on a stronger pipeline of underlying orders as those stockpiling effects diminish.
| Indicator | Previous | Latest |
|---|---|---|
| Manufacturing PMI | 53.9 | 52.5 |
| Manufacturing Output | Strong | Fastest since Sep 2024 |
| New Orders | Stronger | Growth slowed |
| Business Optimism | Tepid | Remained subdued |
| Input Cost Inflation | Elevated | Still elevated |
| Selling Price Inflation | Elevated | Slowed |
