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Economic Buzz: UK manufacturing downturn eases in June
01-Jul-2025 14:40
The downturn in the UK manufacturing sector showed further signs of slowing at the end of the second quarter. Although output, new orders and employment all contracted, rates of decline eased in all three cases.

Business optimism improved in tandem, reaching a four-month high. The seasonally adjusted S&P Global UK Manufacturing Purchasing Managers' Index (PMI) posted 47.7 in June, its highest reading in five months and up further from March's near one-and-a-half year low.

The reading was unchanged from the earlier flash estimate released on June 23.

June data signaled a decrease in manufacturing production for the eighth consecutive month. Lower total new order inflows reflected weaker intakes from both domestic and overseas clients.

The end of the second quarter also provided evidence of manufacturers' outlook strengthening. The end of the second quarter also provided evidence of manufacturers' outlook strengthening.

Job cuts at manufacturers were reported for the eighth consecutive month in June. Manufacturing employment was also lowered to reduce excess capacity at factories.

Average input costs rose for the eighteenth consecutive month in June. Part of the increase in costs was passed on to clients in the form of higher output charges in June.

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