2025.08.2109:03:17UTC+00UK Manufacturing Sector Contracts More than Expected

In August 2025, the S&P Global UK Manufacturing PMI fell to 47.3, down from 48 in July, missing the anticipated mark of 48.3. Manufacturing output continued its decline, primarily due to weak new orders and fierce competition, as global demand remained tepid amidst uncertainty over US tariffs. The decrease in new business achieved its fastest rate since April, and reductions in employment intensified. Additionally, input costs increased more rapidly, with firms experiencing freight delays and supply chain disruptions, marking the largest drop in supplier performance since December 2024. Despite the rise in input costs, factory gate price inflation moderated to its lowest level since January, influenced by subdued demand and competitive pressures. Nevertheless, business optimism saw an upswing, as manufacturers remain hopeful for a recovery in customer demand and a modest market rebound in the year ahead, although apprehensions regarding global trade risks linger.