Latest news with #RobDobson
The Star
4 days ago
- Business
- The Star
Britain's manufacturing sector sustains contraction in May
LONDON, June 2 (Xinhua) -- Britain's manufacturing sector continued the streak of contraction in May amid weak global market conditions, trade uncertainty and rising employment costs, data released by S&P Global showed on Monday. The seasonally adjusted UK Manufacturing Purchasing Managers' Index (PMI) stood at 46.4 in May, up from 45.4 in April, S&P Global said, noting that the figure has nonetheless signalled a deterioration in operating performance in each of the past eight months. The data further showed that the country's manufacturing production contracted for the 7th consecutive month in May, while new business volume decreasing for the 8th month, as demand for new work fell both domestically and overseas. New export orders further dropped in May due to tariff uncertainty, government policy and global market turbulence, with foreign demand falling for the 40th successive month. Business confidence remained subdued as manufacturers continued to raise concerns that turbulent trade conditions, the weak economic outlook and rising cost burdens will make market conditions tough during the year ahead. "Smaller manufacturers are experiencing the sharpest pinch, registering the steepest retrenchments in output and demand and seeing their confidence slump to a near record low. Job losses are also rising across manufacturing, with the rate of decline in employment gathering pace," said Rob Dobson, director at S&P Global Market Intelligence. "Trading conditions remain turbulent both at home and abroad, making either a return to stabilization or a sink back into deeper contraction likely during the coming months," Dobson added.
Yahoo
4 days ago
- Business
- Yahoo
UK factories struggle as trade uncertainty, higher costs hit, PMI shows
LONDON (Reuters) -The downturn in British manufacturing was less steep than first feared in May but output, orders and jobs continued to drop as companies cited recent tax hikes and U.S. President Donald Trump's tariffs, a survey showed on Monday. The final reading of the S&P Global UK manufacturing Purchasing Managers' Index (PMI), a measure of activity among factories, was 46.4 in May compared to 45.4 in April. It was the highest since February but remained below the 50 threshold for growth. The provisional PMI figure for May was 45.1. While the rates of contraction across new orders, output and exports eased, survey compiler S&P Global said the environment for manufacturers was still tough. "May PMI data indicate that UK manufacturing faces major challenges, including turbulent market conditions, trade uncertainties, low client confidence and rising tax-related wage costs," Rob Dobson, director at S&P Global Market Intelligence, said. May's decline in output was linked to a reduced intake of new business as demand from domestic and overseas fell. The fall in exports orders was mainly linked to weaker demand from the U.S. and Europe. The survey showed 49% of manufacturers expected to see output increase over the coming year, slightly above 44% in April. Manufacturing firms cut employment at the fastest pace in three months in response to uncertain economic outlook - plus a rise in employers' social security contributions and 6.7% increase in the minimum wage that came into force in April. But there were signs that the worst of the inflation surge may have passed, S&P said, as the pace of increases in input costs and selling prices slowed. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Daily Mail
4 days ago
- Business
- Daily Mail
UK manufacturing sector continues to shrink as labour costs grow
Britain's manufacturing industry continued to shrink in May, although the rate of contraction improved. The closely watched S&P Global UK Manufacturing Purchasing Managers' Index (PMI) gave a reading of 46.4 for May. While this was higher than the 45.4 recorded in April and the provisional estimate of 45.1, it was below the neutral 50 threshold for the eighth consecutive month. S&P Global said the British manufacturing industry was affected by a mix of subdued global demand, volatile trading conditions, and rising cost pressures, which hit output, new orders, new export business, and employment. Manufacturing production shrank for the seventh consecutive month amidst reduced new work volumes from both domestic and overseas clients. At the same time, new business fell for the eighth successive month due to a 'general reluctance among clients to commit to new contracts'. S&P said clients were partly reluctant to spend money following the UK Government's recent hikes in National Insurance contributions and minimum wages. In early April, employers' NI contributions rose from 13.8 per cent on salaries above £9,000 to 15 per cent on annual salaries exceeding £5,100. The National Living Wage also increased by 6.7 per cent to £12.21 per hour, while the hourly National Minimum Wage for 18 to 20-year-olds jumped by 16.3 per cent to £10. Rob Dobson, director at S&P Global Market Intelligence, said: 'May PMI data indicate that UK manufacturing faces major challenges, including turbulent market conditions, trade uncertainties, low client confidence and rising tax-related wage costs. Dobson noted 'some signs of manufacturing turning a corner' and highlighted PMI indices on output and new orders growing over the past two months. Yet he added: 'Trading conditions remain turbulent both at home and abroad, making either a return to stabilisation or a sink back into deeper contraction likely during the coming months.' President Donald Trump has upended the global trading order and caused significant uncertainty in recent months by imposing tariffs on goods entering the US. He has put a 10 per cent universal tariff on US goods imports, a 25 per cent duty on imported steel and aluminium, and a 30 per cent levy on most products from China. S&P said manufacturers affected by higher costs blamed tariffs, as well as freight prices, rising energy bills, and suppliers passing on costs. It also claimed tariff uncertainty continued contributing to a decrease in new export orders while average vendor lead times expanded to their 'greatest extent' so far this year. However, input price inflation still eased to a five-month low, and good weather provided a sales uplift for some manufacturers. Mike Thornton, Head of Industrials at RSM UK, remarked: 'While uncertainty and disruption are easing, we're yet to see genuine signs of a rebound in activity and long-term growth. 'With the government's spending review and industrial strategy due this month, we're expecting policy will clarify manufacturing's role as a key growth-driving industry, giving businesses the clarity and confidence to make long-term investment decisions.'
North Wales Chronicle
4 days ago
- Business
- North Wales Chronicle
UK manufacturing shrinks again but may be ‘turning a corner'
Factories saw the recent downturn linked to trade tensions, US tariffs and higher costs slow down during May but highlighted that confidence was still 'subdued'. The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 46.4 in May, up from 45.4 in April. Any reading above 50 indicates that activity is growing while any score below means it is contracting. The sector is, therefore, still contracting, but at a slower rate. It was a stronger performance than expected, with economists having predicted a reading of 45.1 for the month. Rob Dobson, director at S&P Global Market Intelligence, said: 'May PMI data indicate that UK manufacturing faces major challenges, including turbulent market conditions, trade uncertainties, low client confidence and rising tax-related wage costs. 'Downturns in output, new orders and new export business have continued, and business optimism has stayed subdued by the historical standards of the survey. 'There are some signs of manufacturing turning a corner, though. 'PMI indices tracking output and new orders have moved higher in each of the past two months, suggesting the downturn is easing, and came in better than the earlier flash estimates for May.' Firms saw factory production contract again as companies scaled back production due to a reduction in new work, both in the UK and from overseas clients. Total new business volumes also decreased further, although this was at a slower rate than the previous month. Weak global market conditions, trade uncertainty, low customer confidence and cost pressures linked to the recent rise in employer national insurance contributions were all linked to the continued decline. However, some firms indicated that warmer weather conditions helped support positive sales in May. The latest figures come amid continued uncertainty over US President Donald Trump's tariff plans, which continued to change in recent weeks. Mr Trump said a new 50% import tariff on steel and aluminium will come into force on Wednesday. The US agreed earlier this month that it will ultimately drop these tariffs from imports of these products from the UK, but firms in these sectors are now expected to face the 50% rate until the details on UK-US deal are confirmed.
Rhyl Journal
4 days ago
- Business
- Rhyl Journal
UK manufacturing shrinks again but may be ‘turning a corner'
Factories saw the recent downturn linked to trade tensions, US tariffs and higher costs slow down during May but highlighted that confidence was still 'subdued'. The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 46.4 in May, up from 45.4 in April. Any reading above 50 indicates that activity is growing while any score below means it is contracting. The sector is, therefore, still contracting, but at a slower rate. It was a stronger performance than expected, with economists having predicted a reading of 45.1 for the month. Rob Dobson, director at S&P Global Market Intelligence, said: 'May PMI data indicate that UK manufacturing faces major challenges, including turbulent market conditions, trade uncertainties, low client confidence and rising tax-related wage costs. 'Downturns in output, new orders and new export business have continued, and business optimism has stayed subdued by the historical standards of the survey. 'There are some signs of manufacturing turning a corner, though. 'PMI indices tracking output and new orders have moved higher in each of the past two months, suggesting the downturn is easing, and came in better than the earlier flash estimates for May.' Firms saw factory production contract again as companies scaled back production due to a reduction in new work, both in the UK and from overseas clients. Total new business volumes also decreased further, although this was at a slower rate than the previous month. Weak global market conditions, trade uncertainty, low customer confidence and cost pressures linked to the recent rise in employer national insurance contributions were all linked to the continued decline. However, some firms indicated that warmer weather conditions helped support positive sales in May. The latest figures come amid continued uncertainty over US President Donald Trump's tariff plans, which continued to change in recent weeks. Mr Trump said a new 50% import tariff on steel and aluminium will come into force on Wednesday. The US agreed earlier this month that it will ultimately drop these tariffs from imports of these products from the UK, but firms in these sectors are now expected to face the 50% rate until the details on UK-US deal are confirmed.
