UK factory production has eased as the industry revealed their strongest output for five months, but due to government policy, tariffs and the global economy driving uncertainty which is crating weak demand.
The S&P Global UK manufacturing PMI survey showed in June a reading of 47.7 compared to 46.4 in May.
Rob Dobson, director at S&P Global Market Intelligence, said: “Although the downturn in UK manufacturing continued in June, the latest PMI survey provides signs of conditions stabilising.
“Production, new orders and employment all fell at slower rates, while business optimism picked up to a four-month high.
“That said, any hoped-for stabilisation remains fragile and subject to potential headwinds that could severely impact demand, supply chain reliability and future growth prospects.”
Mike Thornton, head of industrials at RSM UK, said: “The manufacturing PMI increased for the second consecutive month in June, showing signs of improvement across the board.
“The new orders index saw the most notable monthly uptick, rising to the highest level since October 2024, which is contributing to growing industry optimism, a trend that’s likely to continue following this week’s trade deal between the US and UK coming into force.”
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