UK manufacturing activity remained in contraction in May, with PMI finalized at 46.4, up modestly from April’s 45.4.
The data indicate that the sector continues to face “major challenges,” according to S&P Global’s Rob Dobson, citing turbulent domestic and global conditions, trade uncertainty, subdued client confidence, and increased wage costs tied to tax changes.
Still, there are early signs that the worst of the downturn may be easing. The indexes for output and new orders have risen for two consecutive months and were stronger than the initial flash estimates, hinting at possible stabilization.
However, Dobson warned that the sector could either steady or slip further depending on how trading conditions evolve in the coming months.
