UK PMI Manufacturing was finalized at 52.5 in August, up from July’s 52.1, and 26-month high. Growth was broad-based across sectors, with strong domestic demand driving new contract wins. This domestic strength helped offset the continued decline in export orders, which have been falling steadily since early 2022.
Rob Dobson, Director at S&P Global Market Intelligence, noted that manufacturing remained a “positive contributor” to the UK economy, with solid growth in output, new orders, and the strongest job creation in over two years. The investment goods sector led the upturn.
However, the sector faces ongoing challenges in exports, with weaker demand from Europe and China, along with issues like freight delays, high shipping costs, and political uncertainty, hampering overseas sales.
These challenges are also disrupting supply chains, leading to longer delivery times and driving up input costs, which saw another sharp increase in August.
