FX.co ★ UK Manufacturing Sector Continues to Contract in May

The S&P Global UK Manufacturing PMI decreased to 45.1 in May 2025 from 45.4 in April, underperforming market forecasts of 46.0, according to initial estimates. This reading indicated a significant worsening in the manufacturing sector, with output contracting at a faster rate and new orders diminishing amid escalating global economic uncertainties. Employment decreased at its most rapid rate in five years, influenced by weak demand, climbing payroll expenses, and limited capacity pressures. Additionally, supplier delivery times experienced the most considerable delays since February 2024, attributed to international shipping setbacks and deteriorating port efficiency. On the cost front, input prices continued their sharp ascent, although the pace of increase has decelerated. Business sentiment remained among the weakest observed in over two and a half years, hindered by apprehensions regarding US tariffs.