UK PMI Manufacturing was finalized at 52.1 in July, down from 52.8 in June. That’s also the lowest level in 25 months. S&P Global said that output fell in consumer and intermediate goods industries. Job created accelerated as companies addressed staff shortages.
Rob Dobson, Director at S&P Global Market Intelligence, said:
“The UK manufacturing sector shifted into reverse gear at the start of the third quarter. Output contracted for the first time since May 2020, as new order intakes suffered the first back-to-back monthly decreases for two years.
“Rising market uncertainty, the cost of living crisis, war in Ukraine, ongoing supply issues and inflationary pressures are all hitting demand for goods at the same time, while lingering post-Brexit issues and the darkening global economic backdrop are hampering exports.
“With the Bank of England implementing further interest rate hikes to combat inflation, the outlook is beset with downside risks. With this in mind, the continued low degree of optimism among manufacturers is of little surprise.”