UK Manufacturing PMI Tumbles To 2-Year Low In June

The UK's Purchasing Managers' Index (PMI) for the manufacturing sector dipped to a two-year low of 52.8 in June, according to a report released on Friday.

The figure decreased from 54.6 in May as output growth ground to a near-standstill pace and new orders contracted for the first time in 17 months, said US-based financial services company S&P Global.

The weaker economic outlook, reduced intake of export orders, slower growth of domestic demand, the war in Ukraine, raw material shortages and the slowdown in China contributed to the reduction, the report said.

Business optimism slipped to the lowest point since May 2020, with fewer firms expecting production to rise over the coming year, it added.

Despite signs indicating that supply chain constraints and cost inflationary pressures may have passed their peaks, UK manufacturing will likely see the economic backdrop darken further in the second half of the year, said Rob Dobson, director at S&P Global Market Intelligence. -