UK PMI Manufacturing was finalized at 45.3 in July. This level, matching the joint-weakest performance since May 2020, signals an ongoing deterioration in operating conditions, with PMI remaining below the pivotal 50.0 threshold for the twelfth consecutive month.
“July saw a deepening of the UK’s manufacturing downturn,” noted Rob Dobson, Director at S&P Global Market Intelligence. He attributed the slump to a combination of factors including overstocked clients, escalating export losses, rising interest rates, and the ongoing cost-of-living crisis.
Dobson also highlighted falling domestic and export demand and rapidly declining backlogs of work as precursors to potential cutbacks in production, employment, and purchasing in the near future. While falling prices offer some relief from inflation, he warned that they could signify more trouble ahead for manufacturers’ profits and subsequent investment.