Key facts
- British manufacturing orders deteriorated in June at the fastest rate since September 2020.
- The CBI's monthly order books balance fell to -45 in June.
- The CBI's gauge of expected output for the next three months reached its lowest point since December 2024.
- The UK services sector contracted in June at its fastest pace since January 2023.
- The S&P Global UK Services PMI provisional estimate for June was 48.7, down from 49.3 in May.
British manufacturing orders deteriorated in June at the fastest rate since September 2020, during the COVID-19 pandemic, according to a survey by the Confederation of British Industry (CBI). The CBI's monthly order books balance fell to -45 in June from -41 in May, its lowest ebb since the pandemic. The gauge of expected output for the next three months also fell to its lowest since December 2024.
This contrasts with figures from S&P Global, which showed manufacturing orders rising, but the larger services sector falling deeper into contraction. The S&P Global UK Services PMI provisional estimate for June was 48.7, down from 49.3 in May, indicating a contraction in activity, employment, and new business. The composite PMI, which includes both services and manufacturing, also declined to 49.4.
CBI economist Cameron Martin noted that manufacturers are facing a difficult trading environment with order books at their weakest since 2020 and output continuing to fall. While price pressures from manufacturers have eased, they remain elevated. Martin suggested that the re-opening of the Strait of Hormuz could help, but energy prices and supply chains would take time to normalize.
