01.07.202608:38:58UTC+00UK Manufacturing Growth Slows More than Expected

The S&P Global UK Manufacturing PMI registered 52.5 in June, down from May’s four-year peak of 53.9 and below the earlier flash estimate of 53.1. Factory output rose at its fastest pace in 21 months, supported by solid domestic demand and stronger export sales to China, the US, and the EU. In contrast, growth opportunities in the Middle East stalled amid regional conflict. New orders, however, slowed to their weakest rate of expansion since December 2025. Employment increased slightly for a third consecutive month, as rising input costs and heightened uncertainty led some firms to impose hiring freezes. At the same time, severe global shipping disruptions and material shortages significantly extended supplier delivery times and pushed input prices higher, prompting manufacturers to lift selling prices at a rate close to May’s four-year high. Looking ahead, business sentiment remained subdued: 48% of firms expect growth driven by new technologies and AI, but this optimism is tempered by broader policy concerns.