UK manufacturing growth slows in July as Iran war impact emerges

London, United Kingdom. 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 data pointed to a renewed impact from the Iran war towards the end of last month.

PMI decline

S&P Global’s Purchasing Managers’ Index for Britain’s manufacturing sector fell to 51.9 in July from 52.5 in June.

The reading was below an earlier provisional, or flash, estimate of 52.8, which had been the third-highest reading of the past four years.

Factors behind the fall

S&P Global said the month-on-month decline in the PMI reflected a steep reduction in stocks of purchases, slower employment growth and a sharp easing in the rate of increase in vendor lead times.