FX.co ★ UK Manufacturing Sector Contracts Less than Expected

The S&P Global UK Manufacturing PMI improved to 47.7 in June 2025, up from 46.4 in May, and exceeded market predictions of 46.6. This reflects the slowest rate of contraction in five months. Nonetheless, challenges persisted for the sector as manufacturers reported yet another decrease in export orders. This drop is primarily attributed to the influence of US tariffs, increased geopolitical uncertainty, and intense global price competition. In June, output saw a significant decline, with new international orders decreasing for the eighth consecutive month. However, the reduction in export sales decelerated to the mildest rate in five months, indicating a degree of stabilization. Companies pointed to reduced demand from overseas due to tariffs and uncertainty, while some noted pressures from more cost-effective competitors.