Final data published by S&P Global/CIPS showed that business activity in the UK manufacturing sector declined slightly in June, but input prices rose at the sharpest pace since January 2023.
UK manufacturing PMI fell to 50.9 points from 51.2 points in May. A value above 50 points indicates an expansion of activity in the sector. Economists had expected an increase to 51.4 points.
The report also showed that manufacturing production grew again in June as companies responded to an increase in new orders and ongoing efforts to clear backlogs of work. Overall, production growth was only slightly below the 25-month high reached in May. New business intakes rose for the third time in the past four months. Meanwhile, inflows of new work from overseas declined for the twenty-ninth month in a row. The data also showed that employment declined for the 21st month in a row. As for the inflationary situation, average purchase prices rose for the sixth consecutive month and at the fastest pace since January 2023. Increased costs led to higher selling prices, which rose for the eighth successive month. Manufacturers maintained a positive outlook in June, reflecting expectations for a market recovery, planned growth strategies, new product launches and promotional activities. Optimism stayed close to May's 27-month high, with 57% of firms expecting output to rise over the coming year.