Key facts
- UK manufacturing activity expanded for the ninth consecutive month in July.
- The S&P Global PMI for UK manufacturing fell to 51.9 in July, a four-month low.
- The July PMI was revised down from a preliminary reading of 52.8.
- The output component of the PMI rose to 52.9.
- Input cost inflation slowed to its lowest since February.
- Employment levels stagnated.
British manufacturing activity expanded for a ninth consecutive month in July, but at its slowest pace in four months, according to purchasing managers' data. The S&P Global Purchasing Managers' Index for the sector fell to 51.9 in July from 52.5 in June, a downward revision from the earlier flash reading of 52.8.
The decline in the PMI was attributed to a steep reduction in stocks of purchases, slower jobs growth, and a sharp easing in the rate of increase in vendor lead times. However, the manufacturing PMI's output component rose to 52.9 from 52.6, marking the broadest growth since September 2024, though it was a smaller increase than the flash reading of 53.6.
Manufacturers reported the smallest rise in input costs since February, while employment levels stagnated. Small manufacturers experienced a mild downturn in production volumes, contrasting with growth reported by medium and larger firms. Official data previously showed a 2.3% annual rise in manufacturing output in May, the largest increase since March 2024.
The data was collected between July 9 and July 28. The report noted that a breakdown in the truce between the United States and Iran in mid-July, and a Houthi naval blockade declaration on July 20, pushed oil prices above $100 a barrel in late July, potentially impacting manufacturing towards the end of the month.