FX.co ★ UK Factory Activity Contraction Softens

In June 2025, the S&P Global UK Manufacturing PMI increased to 47.7, up from 46.4 in May. This figure aligns with the flash estimate and surpasses the initial market forecast of 46.6. The data indicates the mildest decline in UK manufacturing activity since January, mirroring gradual recoveries seen in similar European surveys. Although new orders continued their nine-month downtrend, the decline was less pronounced, influencing output levels as businesses faced challenging market conditions stemming from uncertain economic policies, geopolitical tensions, and tariffs. A decrease in new orders was also noticeable from international clients, especially in the US, Europe, and China. This downturn led to job cuts for the eighth month in a row. Regarding pricing, input costs rose for the 18th consecutive month due to increased shipping and labor expenses, resulting in higher output charges to clients.