United Kingdom: Manufacturing PMI rises in July
The S&P Global UK Manufacturing Purchasing Managers’ Index (PMI) rose to 52.1 in July from 50.9 in June. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in manufacturing-sector operating conditions compared to the previous month.
The uplift in the PMI was primarily driven by higher production growth, which hit its fastest pace since February, alongside a strengthening in new orders and employment levels. Production volumes increased across consumer, intermediate, and investment goods industries.
Less positively, July saw significant inflationary pressures, with input price inflation reaching an 18-month high, primarily due to the ongoing Red Sea crisis and associated freight issues. Finally, business sentiment in the manufacturing sector improved, with optimism reaching its second-highest level in almost two and a half years. This optimism was based on hopes for an economic revival and reduced political uncertainty, with 60% of companies surveyed forecasting that output will rise over the coming 12 months.