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Financial News: UK Manufacturing Downturns Slows In July

UK Manufacturing Downturns Slows In July

08/01/2025 - 09:39:00 (RTTNews)

(RTTNews) - The UK manufacturing downturn slowed in July as output contracted at a slower pace and business optimism hit a five-month high, survey data from S&P Global showed on Friday.

The final factory Purchasing Managers' Index rose to 48.0 in July from 47.7 in the previous month. The flash score was 48.2. The reading signaled contraction in each of the past ten months.

S&P Global Market Intelligence Director Rob Dobson said, the UK manufacturing sector is starting to send some tentatively encouraging signals.

"However, it's clear that there's no assured path back to strong growth," Dobson added.

The survey showed that manufacturing output shrank for the ninth straight month but the latest fall was only mild.

Incoming new business dropped for the tenth straight month due to weaker confidence and willingness to spend across domestic and overseas markets.

New export orders decreased throughout the last three-and-a-half years in July. The latest fall reflects global tariff uncertainties, ongoing administrative issues post Brexit and rising competition.

Companies reduced employment in July. Job losses were registered for the ninth consecutive month.

Meanwhile, business optimism rose to a five-month high in July, attributed to hopes for a market recovery, new product launches and operational improvements.

Regarding prices, the survey showed that input cost and selling price inflation remained relatively stable in July.

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