UK manufacturing sector sees growth at slower rate in June

(Alliance News) - The UK manufacturing sector continued to grow in June, but at a slower rate, new data on Monday showed.

The seasonally adjusted S&P Global UK manufacturing purchasing managers' index registered 50.9 in June, down slightly from May's 22-month high of 51.2 and below the earlier flash estimate of 51.4.

The PMI has posted above the neutral 50.0 mark – signalling expansion – in each of the past two months.

S&P explained that three out of the five PMI components were at levels consistent with improved operating conditions in June, as output and new orders expanded and suppliers' delivery times lengthened. In contrast, stocks of purchases and employment both decreased.

Rob Dobson, director at S&P Global Market Intelligence, said: "The UK manufacturing sector is enjoying its strongest spell of growth for over two years, with June seeing output and new order growth sustained at robust rates similar to May's recent highs. The performance of the domestic market remains a real positive, providing a ripe source of new contract wins. In contrast, the ongoing weak export performance is concerning, with manufacturers reporting difficulties in securing new business in several key markets including the US, China and mainland Europe."

The composite PMI is compiled by S&P Global from responses to questionnaires sent to survey panels of around 650 manufacturers and 650 service providers in the UK. Responses were collected between June 12 and 25.

By Sophie Rose, Alliance News senior reporter

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