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Fibre2Fashion
7 days ago
- Business
- Fibre2Fashion
UK manufacturing downturn eases slightly in July, but risks remain
The UK manufacturing sector showed tentative signs of stabilisation at the start of Q3, with the S&P Global UK Manufacturing PMI inching up to 48.0 in July from 47.7 in June—a six-month high. While the index remained below the neutral 50 mark, indicating contraction for the tenth consecutive month, the rate of decline in output was the mildest since the current downturn began. Business optimism improved to a five-month high, driven by expectations of a future recovery, new product launches and internal improvements. Nonetheless, sentiment stayed below the long-run average, weighed down by weak demand, policy uncertainty, and global trade challenges, S&P Global said in a press release. Output shrank for the ninth month in a row, but contraction was notably softer. Consumer and intermediate goods producers returned to growth after prolonged declines, though investment goods output worsened. New orders fell at a quicker pace, extending a ten-month slide, with firms citing low client confidence and tighter budgets—partly influenced by recent government decisions on the National Minimum Wage (NMW) and employer National Insurance Contributions (NICs). UK manufacturing showed tentative stabilisation in July, with the PMI rising to a six-month high of 48.0, though still in contraction for the tenth month. Output declined at the slowest pace in the current downturn, and business optimism improved. However, weak domestic and export demand, rising costs, job cuts, and policy uncertainty continued to weigh heavily on the sector's overall performance. Export orders declined for the 42nd straight month, reflecting global tariff concerns, Brexit-related frictions, and rising foreign competition. Weaker demand was reported from key markets including North America, the EU, India, and China. Employment in the sector continued to shrink, with July marking the ninth consecutive month of job losses. Hiring freezes and layoffs were reportedly used to offset cost pressures stemming from wage and tax reforms. Backlogs fell further despite reduced capacity, indicating under-utilisation of resources. Stocks of finished goods declined for a sixth month, while purchasing activity and input inventories were also cut to align with softer demand. Although cost pressures remained stable overall, firms noted rising transport, shipping, and supplier charges. Despite glimmers of hope, the data underscores a sector still under stress, with subdued domestic and international conditions tempering any immediate recovery. Rob Dobson, director at S&P Global Market Intelligence , said: 'The UK manufacturing sector is starting to send some tentatively encouraging signals, with the downturn moderating in July as factory output came close to stabilising and future output expectations hit the highest since February. However, it's clear that there's no assured path back to strong growth. Clients in the home market often remain unwilling to spend due to cost factors such as higher minimum wages and employer NICs, while export markets are being buffeted by geopolitical stresses and trade and tariff uncertainties. 'The biggest concern remains the labour market, with the rate of job cutting through much of 2025 among the steepest since the pandemic year of 2020. With the Autumn budget only a few months away, manufacturers will likely remain cautious and focussed on stabilisation while waiting to see if future budget announcements provide much needed support or further challenges to overcome." Fibre2Fashion News Desk (KD)
The Star
01-08-2025
- Business
- The Star
Britain's manufacturing contraction eases in July but outlook remains weak
LONDON, Aug. 1 (Xinhua) -- Britain's manufacturing downturn showed signs of easing in July, with the seasonally adjusted Manufacturing Purchasing Managers' Index (PMI) rising to a six-month high of 48, according to data released by S&P Global on Friday. The July PMI was slightly higher than 47.7 in June, but the index has now signalled contraction for ten consecutive months. S&P Global noted that risks persist, including fragile domestic and overseas market conditions, subdued consumer confidence, and manufacturers' ongoing concerns about costs. Market conditions remained subdued in July as British manufacturers reported weak spending willingness and low confidence at home and abroad. Rob Dobson, director at S&P Global Market Intelligence, said although the UK manufacturing sector is starting to send some tentatively encouraging signals, there's no assured path back to strong growth. Domestic clients are unwilling to spend due to cost rises triggered by higher minimum wages and employer national insurance contributions, while export markets are being buffeted by geopolitical stresses as well as trade and tariff uncertainties. The data also showed that new export orders have decreased over the past three and a half years. Additionally, the sector faced a weak labor market in July. The company attributed this to a combination of weak demand, rising staff costs, and subdued market confidence. Job losses were recorded for the ninth month in a row, with the pace of reductions over the past six months ranking among the sharpest since 2020, when the country was hit by the COVID-19 pandemic.
South Wales Guardian
01-08-2025
- Business
- South Wales Guardian
UK factory slowdown eases further despite weak conditions
Manufacturing firms saw the recent downturn in activity ease back further, but cautioned over weak market conditions in the UK and overseas. The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 48.0 in July, compared with 47.7 in June. Any reading above 50 indicates that activity is growing, while any score below means it is contracting. It was marginally worse than expected, with economists having predicted a reading of 48.2. Rob Dobson, director at S&P Global Market Intelligence, said: 'The UK manufacturing sector is starting to send some tentatively encouraging signals, with the downturn moderating in July as factory output came close to stabilising and future output expectations hit the highest since February. 'However, it's clear that there's no assured path back to strong growth. 'Clients in the home market often remain unwilling to spend due to cost factors such as higher minimum wages and employer NICs, while export markets are being buffeted by geopolitical stresses and trade and tariff uncertainties.' The manufacturing sector saw activity contract for the ninth consecutive month despite the slowdown in decline. Surveyed businesses said market conditions remained 'subdued' in July as new business fell at a faster pace than during June. UK manufacturers highlighted that willingness to spend was weak domestically and overseas due to concerns over economic uncertainty and higher labour costs. New export orders declined again as firms highlighted the continued impact of US tariffs. Weak demand and rising staff costs contributed to another fall in employment during the month, marking the ninth consecutive month of falling employment. Dave Atkinson, UK head of manufacturing at Lloyds, said: 'UK manufacturers continue to face into fast-changing global trade conditions and continued cost pressures. 'Despite this, businesses remain more optimistic about the drive for sustainable growth and plans to accelerate infrastructure projects through the Industrial Strategy. 'They remain focused on building momentum and making sure they're ready to capitalise on emerging opportunities as conditions evolve.'
Rhyl Journal
01-08-2025
- Business
- Rhyl Journal
UK factory slowdown eases further despite weak conditions
Manufacturing firms saw the recent downturn in activity ease back further, but cautioned over weak market conditions in the UK and overseas. The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 48.0 in July, compared with 47.7 in June. Any reading above 50 indicates that activity is growing, while any score below means it is contracting. It was marginally worse than expected, with economists having predicted a reading of 48.2. Rob Dobson, director at S&P Global Market Intelligence, said: 'The UK manufacturing sector is starting to send some tentatively encouraging signals, with the downturn moderating in July as factory output came close to stabilising and future output expectations hit the highest since February. 'However, it's clear that there's no assured path back to strong growth. 'Clients in the home market often remain unwilling to spend due to cost factors such as higher minimum wages and employer NICs, while export markets are being buffeted by geopolitical stresses and trade and tariff uncertainties.' The manufacturing sector saw activity contract for the ninth consecutive month despite the slowdown in decline. Surveyed businesses said market conditions remained 'subdued' in July as new business fell at a faster pace than during June. UK manufacturers highlighted that willingness to spend was weak domestically and overseas due to concerns over economic uncertainty and higher labour costs. New export orders declined again as firms highlighted the continued impact of US tariffs. Weak demand and rising staff costs contributed to another fall in employment during the month, marking the ninth consecutive month of falling employment. Dave Atkinson, UK head of manufacturing at Lloyds, said: 'UK manufacturers continue to face into fast-changing global trade conditions and continued cost pressures. 'Despite this, businesses remain more optimistic about the drive for sustainable growth and plans to accelerate infrastructure projects through the Industrial Strategy. 'They remain focused on building momentum and making sure they're ready to capitalise on emerging opportunities as conditions evolve.'
Powys County Times
01-08-2025
- Business
- Powys County Times
UK factory slowdown eases further despite weak conditions
The recovery in UK factory production gathered more pace last month as the sector posted its strongest performance for six months, according to new figures. Manufacturing firms saw the recent downturn in activity ease back further, but cautioned over weak market conditions in the UK and overseas. The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 48.0 in July, compared with 47.7 in June. Any reading above 50 indicates that activity is growing, while any score below means it is contracting. It was marginally worse than expected, with economists having predicted a reading of 48.2. Rob Dobson, director at S&P Global Market Intelligence, said: 'The UK manufacturing sector is starting to send some tentatively encouraging signals, with the downturn moderating in July as factory output came close to stabilising and future output expectations hit the highest since February. 'However, it's clear that there's no assured path back to strong growth. 'Clients in the home market often remain unwilling to spend due to cost factors such as higher minimum wages and employer NICs, while export markets are being buffeted by geopolitical stresses and trade and tariff uncertainties.' The manufacturing sector saw activity contract for the ninth consecutive month despite the slowdown in decline. Surveyed businesses said market conditions remained 'subdued' in July as new business fell at a faster pace than during June. UK manufacturers highlighted that willingness to spend was weak domestically and overseas due to concerns over economic uncertainty and higher labour costs. New export orders declined again as firms highlighted the continued impact of US tariffs. Weak demand and rising staff costs contributed to another fall in employment during the month, marking the ninth consecutive month of falling employment. Dave Atkinson, UK head of manufacturing at Lloyds, said: 'UK manufacturers continue to face into fast-changing global trade conditions and continued cost pressures. 'Despite this, businesses remain more optimistic about the drive for sustainable growth and plans to accelerate infrastructure projects through the Industrial Strategy. 'They remain focused on building momentum and making sure they're ready to capitalise on emerging opportunities as conditions evolve.'
