London, United Kingdom. British manufacturing activity cooled in June despite a rise in output driven by stockpiling ahead of expected price increases and supply chain problems linked to the Middle East conflict, according to an industry survey.
S&P Global’s final UK Manufacturing Purchasing Managers’ Index for June fell to 52.5 from 53.9 in May and below a preliminary estimate of 53.1. Readings above 50 indicate expansion in activity.
June PMI declines
The final reading of 52.5 showed the sector remained in expansion territory in June, although at a slower pace than in the previous month and below the earlier estimate.
Output supported by stockpiling
The survey’s output index rose to 52.6 from 52.2, its highest level since September 2024. The increase was linked to client stockpiling ahead of expected price rises and concerns over supply chain disruption stemming from the Middle East conflict.
New orders growth slows
Growth in new orders slowed sharply in June, in line with a Confederation of British Industry survey published last week.
S&P Global comment
“The UK manufacturing sector ended the second quarter of the year on a positive note,” said Rob Dobson, director at S&P Global Market Intelligence.
“Sustaining the upturn is becoming a bigger concern. Manufacturers are currently benefiting from client strategic stockpiling, as they safeguard against supply chain disruptions and expected price rises. A drop in the rate of growth of new work intakes suggests this boost is already starting to fade.”
