UK April final manufacturing PMI 45.4 vs 44.0 prelim

• Manufacturing PMI 45.4 vs 44.0 prelim
• Prior 44.9

Key details:

• New orders and employment all decrease.
• Input cost inflation at 28-month high.

Comment:

Rob Dobson, Director at S&P Global Market Intelligence

“The start of the second quarter saw UK manufacturing
buffeted by adverse global market conditions, rising cost
pressures, deteriorating supply chains and increased
trade uncertainty. April saw further contractions in
output, new orders and exports, as well as a slump in
business confidence to its lowest ebb since November
2022.

“Although domestic demand remains soft, overseas
demand is especially weak. New export business fell
at the quickest pace for nearly five years, with demand
from clients in the US, Europe and mainland China all
declining. Surveyed manufacturers noted that US tariff
announcements were having a noticeable impact on
global markets as trading partners adapt to increased
trade volatility.

“Manufacturers are also seeing an increasingly harsh
cost environment, with purchase price inflation hitting
a 28-month high. Alongside general raw material price
increases on global markets, UK producers are also facing
domestic inflationary pressure from increases to National
Insurance, minimum wages and the knock-on impact of
the latter on higher pay grades. These increased costs
are resulting in a combination of higher selling prices
and cutbacks to non-essential spending on staffing
and purchasing, potentially reinforcing the ‘rising costs,
declining demand’ backdrop.”

This article was written by Giuseppe Dellamotta at www.forexlive.com.