UK Manufacturing Sector Logs Near-Two-Year High Amid Strong Export Demand

The UK manufacturing sector continued its recovery in July, posting its fastest pace of growth in nearly two years. According to the S&P Global UK Manufacturing PMI, production rose at a rate of 51.9, down from 52.5 in June but still above the 50.0 threshold for a ninth consecutive month.

The sector's growth was driven by domestic and export demand, with output, new orders, and export orders all accelerating. Export demand was particularly strong, supported by key markets such as North America, the European Union, China, India, and South Korea.

Manufacturing output expanded for a fourth straight month, led by medium and large manufacturers, while small firms recorded a mild decline in production. Total new orders rose for the eighth consecutive month, reflecting improving market conditions.

Input cost inflation eased to a five-month low, and selling price inflation slowed to a four-month low as supply chain pressures continued to ease. Supplier delivery delays were the weakest since the Middle East conflict, providing relief to manufacturers.