Key facts
- British manufacturing activity cooled in June, with the S&P Global UK Manufacturing PMI falling to 52.5.
- The UK's output index rose to 52.6, the highest since September 2024.
- Growth in new orders slowed sharply, suggesting stockpiling benefits are fading.
- Manufacturers' input costs increased at the slowest rate since March.
- Firms' optimism about the year ahead slightly decreased.
British manufacturing activity cooled in June, despite a boost to output from stockpiling ahead of price hikes and supply chain issues related to the Middle East conflict. The final S&P Global UK Manufacturing Purchasing Managers' Index for June fell to 52.5, below preliminary estimates and May's reading.
While the survey's output index reached its highest level since September 2024 at 52.6, growth in new orders slowed significantly. Rob Dobson, director at S&P Global Market Intelligence, noted that the current upturn is being supported by client stockpiling but suggested this boost is already starting to fade.
Manufacturers' input costs rose at the slowest pace since March, and supplier delivery times lengthened by the smallest amount since February. The Bank of England is closely monitoring how higher energy prices might affect the economy. The employment index signalled growth for the third consecutive month, though at a slower pace, and firms were slightly less optimistic about the year ahead.