The upturn in UK manufacturing showed signs of losing momentum at the end of Q2 2026, S&P Global said.
The PMI signalled expansion in each of the past eight months.
Output, new orders and employment expanded and suppliers’ delivery times lengthened.
New work inflows improved for the seventh month in a row in June, and the month saw new export business rise for the sixth month in a row, but mildly.
The seasonally adjusted S&P Global UK manufacturing purchasing managers’ index (PMI) posted 52.5 in June, down from May’s four-year high of 53.9 and the earlier flash estimate of 53.1.
The PMI signalled expansion in each of the past eight months.
Four of the five PMI sub-components were at levels consistent with improved operating conditions.
Output, new orders and employment all expanded and suppliers’ delivery times lengthened.
Stocks of purchases fell following a solid rise in the prior survey month. Manufacturing production expanded for the third month running in June, with the rate of growth improving to a 21-month high.
Increased output was often linked to higher new work intakes, better market confidence and promotional activities.
The consumer and intermediate goods industries both saw growth of production volumes, in contrast to a downturn in the investment goods category.
New work inflows improved for the seventh consecutive month in June, with reports of mild upticks in demand from both domestic and overseas clients. The rate of expansion eased to its weakest since December 2025, a S&P Global release said.
June saw new export business increase for the sixth month in a row, albeit only mildly and to the weakest extent during that sequence. Expansions in the consumer and investment goods sectors were partly offset by a decrease at intermediate goods producers.
Growth of foreign demand was linked to improved new work intakes from China, the European Union and the United States.
Several firms noted that growth opportunities in the Middle East had stalled as a result of war in the region.
The outlook for the manufacturing sector remained tepid at the end of the second quarter. Although 48 per cent of survey respondents forecast output to rise over the coming year, this was slightly below the combined level of those expecting either stagnation (44 per cent) or contraction (9 per cent).
Manufacturers expecting an upturn in output volumes over the next 12 months mainly linked this to new market opportunities, product launches, use of new technologies and market stabilisation.
However, several also noted ongoing concerns about government policy and geopolitical tensions, with some also mentioning they were concentrating more on consolidation during the coming year than towards growth.
Although UK manufacturing employment rose for the third successive month, the rate of job creation remained only modest.
Average input prices rose markedly in June. Although the rate of increase remained elevated, it was the weakest since March.
Supply chain disruptions, material shortages and geopolitical tensions all exerted upward pressure on purchasing costs. Subsequently, average output charges were raised for the seventh month running.
Vendor delivery times in the United Kingdom continued to lengthen to a marked extent in June, as supply chains remained under substantial duress due to global shipping delays, material shortages, port and regulatory issues, tariff disruptions and capacity shortages at vendors.
Fibre2Fashion News Desk (DS)
