- Prior 47.1
There is a slight revision higher to the initial estimate, but it still marks a further downturn as compared to May. This comes despite price pressures falling as subdued demand conditions are weighing further on the manufacturing sector. S&P Global notes that:
“The UK manufacturing sector continued to report
recessionary conditions in June. The headline PMI dropped
to a six-month low as output, new orders and employment
all suffered further declines. Producers are being hit by
weak domestic and export market conditions with clients
showing a greater reluctance to commit to spending
due to market uncertainty, increased competition and
elevated costs. This is also impacting business optimism
and stoking fears among some manufacturers that client
spending may shift to lower cost rivals and markets.
Although some respite is being offered in the short-term
by reduced pressures on supply chains and costs, these
remain a symptom of the current weakness of demand
faced by the sector and are therefore unlikely to play a role
in boosting production moving forward. Manufacturers
therefore remain in defence mode, looking to cut back
spending on purchasing and employment wherever
possible and release capital tied up in stocks.”
/GBP