Financial News: UK Manufacturing Sector Shrinks Sharply

UK Manufacturing Sector Shrinks Sharply

06/02/2025 - 09:54:00 (RTTNews)

(RTTNews) - The UK factory sector shrank further in May as the weak global demand, trade tensions and rising cost burdens weighed on production and new orders, the purchasing managers' survey results from S&P Global showed on Monday.

The final manufacturing PMI rose to a three-month high of 46.4 in May from 45.4 in April. The reading was also above the flash estimate of 45.1.

However, the score remained well below the neutral level of 50.0, suggesting contraction.

Indices monitoring trend in output and new business climbed for the second month in a row, signaling an easing in their respective downturns, S&P said.

Companies continued to scale back production in response to reduced intakes of new work from both domestic and overseas clients. Business volumes decreased for the eighth straight month as both domestic and foreign orders deteriorated.

Tariff uncertainty, government policy and global market turbulence were cited as reasons for further fall in new export orders. New orders from the EU and US markets decreased in May. Sentiment among manufacturers remained subdued but it rose to a three-month high. Firms were concerned about trade conditions, weak economic outlook and rising cost burdens.

Input price inflation eased to a five-month low in May. Part of the increase in costs was offset through higher selling prices.

".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," S&P Global Market Intelligence Director Rob Dobson said.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

India Services Growth Remains Strong In May (49 min(s), 20 sec(s) ago)
(RTTNews) - India's service sector activity expanded at a broadly steady pace in May on the ba ...Full Story»

South Korea Inflation Slows More Than Forecast (53 min(s), 20 sec(s) ago)
(RTTNews) - South Korea's inflation softened more than expected to a five-month low in May, St ...Full Story»

European Economic News Preview: Eurozone Final Composite PMI Due (01 hr(s), 36 min(s), 20 sec(s) ago)
(RTTNews) - Composite Purchasing Managers' survey results from Eurozone and the UK are due on ...Full Story»

Australia GDP Adds 0.2% On Quarter In Q1 (22 min(s), 40 sec(s) ago)
(RTTNews) - Australia's gross domestic product expanded a seasonally adjusted 0.2 percent on q ...Full Story»

Australia Services PMI Ebbs In May - S&P Global (30 min(s), 40 sec(s) ago)
(RTTNews) - The services sector in Australia continued to expand in May, albeit it at a slower pac ...Full Story»

Australia GDP Data Due On Wednesday (18 min(s), 40 sec(s) ago)
(RTTNews) - Australia will on Wednesday release Q1 numbers for gross domestic product, highlightin ...Full Story»

U.S. Job Openings Unexpectedly Increase In April (48 min(s), 40 sec(s) ago)
(RTTNews) - Job openings in the U.S. unexpectedly increased in the month of April, according to a ...Full Story»

U.S. Factory Orders Pull Back Sharply In April (27 min(s), 40 sec(s) ago)
(RTTNews) - A report released by the Commerce Department on Tuesday showed a substantial pullback ...Full Story»