23.06.2022 14:42
Customer spending cutback worries, rapid inflation lead to fall in business activity expectations, report says.
The UK's manufacturing purchasing managers' index (PMI) in June declined to its lowest level in 23 months, according to a report on Thursday.
The index fell to 53.4 in June, down 1.2 points from 54.6 in May, the US-based financial services company S&P Global said.
While the manufacturing production growth eased further to its lowest since February 2021, demand conditions remained subdued in June and new order growth slowed for the fourth consecutive month, it added.
The UK's manufacturing output index also fell 0.4 point to 51.2 in June, from 51.6 in May, marking its lowest level in 16 months.
"Worries about customer spending cutbacks and the impact of rapid inflation on the longer-term economic outlook led to another fall in business activity expectations," said the report.
"UK private sector firms cited hesitancy among clients and squeezed budgets due to rising inflation as key factors holding back demand," it added.
Consumer inflation in the UK jumped 9.1% in May, compared to the same month of last year, and marked a new record annual increase. -