The UK manufacturing sector started the third quarter on a weak footing. Output contracted for the first time in over two years as intakes of new work and new export business both continued to decline. The labour market fared better, as job creation posted a surprise acceleration as companies acted to address staff shortages.
The seasonally adjusted S&P Global / CIPS UK Manufacturing Purchasing Managers’ Index® (PMI®) fell to a 25-month low of 52.1 in July, from 52.8 in June. The PMI held above the 50.0 no-change mark due to faster jobs growth, rising stocks of purchases and longer vendor lead times (although the latter two had less positive influences than in the previous survey month).
The full S&P Global/CIPS UK Manufacturing PMI® Report is attached.
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