FX.co ★ UK Manufacturing Sector Contracts in April

In April 2025, the S&P Global UK Manufacturing PMI experienced a revision upward to 45.4, surpassing the initial estimate of 44.0 and edging past March's 17-month low of 44.9. Even with this adjustment, the index stayed in contraction territory, signifying a notable decline in the sector's performance. Manufacturers reduced production as both domestic and international demand waned, exacerbated by growing economic and trade uncertainties. Employment figures dropped for the sixth consecutive month, with the rate of job loss reaching its second-highest level in nearly five years. Concurrently, work backlogs diminished at their fastest pace in 17 months. On the inflation front, input costs increased at their quickest rate since December 2022, while output price inflation surged to a 26-month high. Business confidence also weakened, with optimism plunging to a 29-month low—merely 47% of the surveyed firms anticipated an output increase over the coming year.