FX.co ★ UK Manufacturing Conditions Worsen to 2023 Lows

In April 2025, the S&P Global Flash UK Manufacturing PMI dropped to 44 from 44.9 in March, aligning with market forecasts. This figure indicates a continued contraction within the manufacturing sector, marking the most significant downturn since August 2023. The decline is largely attributed to weaker demand from international markets, which has negatively impacted business activity. Production volumes decreased for the sixth consecutive month, registering the sharpest decline since August 2022, mainly due to deteriorating market conditions in major export regions. Manufacturing export sales faced substantial pressure from escalating global trade tensions. Excluding the pandemic period, the most recent decrease in international orders for the manufacturing sector is the steepest since February 2009. Moreover, employment in the sector continued to decline, and inflation related to factory gate prices accelerated, as businesses mostly pointed to higher National Insurance contributions and an increase in the National Living Wage. Lastly, expectations for future business activity have significantly weakened.