CIPS UK Manufacturing PMI®3 Jul 2023 09:33
UK Manufacturing PMI at six-month low as output, new orders and employment all contract
Key findings
Manufacturing PMI at 46.5 in June
Output falls in intermediate and investment goods sectors
Input prices and output charges both fall
The end of the second quarter saw the UK manufacturing sector remain in contraction territory, with levels of output, new orders and employment suffering further declines. This was despite signs of price and supply chain pressures easing, as client uncertainty and subdued conditions in domestic and export markets continued to weigh on order books.
The seasonally adjusted S&P Global / CIPS UK Manufacturing Purchasing Managers’ Index® (PMI®) fell to a six-month low of 46.5 in June, down from 47.1 in May. The PMI has signalled contraction in each of the past 11 months. All five of the sub- component indices (output, new orders, stocks of purchases, employment and suppliers' delivery times) were at levels consistent with weaker operating conditions.
Output contracted for the fourth successive month in June, albeit at a slower pace. Downturns at investment and intermediate goods producers continued, in contrast to mild growth in consumer goods output. There were reports linking lower production to reduced new order intakes and capacity being above current demand requirements.
The outlook for output was also less positive at the end of quarter two. Although 53% of manufacturers still forecast growth over the coming 12 months, the overall degree of optimism dipped to a six-month low.
https://www.pmi.spglobal.com/Public/Home/PressRelease/3732a4026a3f496aabab5c81744b6d9f
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