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The UK manufacturing sector ended the second quarter of 2026 on a positive note, although the pace of expansion fell short of market hopes, a closely watched report on Wednesday showed. The seasonally adjusted S&P Global UK manufacturing purchasing managers’ index posted 52.5 points in June, down from May’s four-year high of 53.9, and below the earlier flash estimate of 53.1. The manufacturing PMI has expanded for the last eight months, and in June remained above the 50.0 no change mark. Companies continued to benefit from clients’ strategic stockpiling, although a softer uplift in incoming new orders suggested the impetus provided by this was already starting to fade, S&P Global said. Output, new orders and employment all expanded and suppliers’ delivery times lengthened in June, although stocks of purchases fell following a solid rise in the prior survey month. Manufacturing production expanded for the third month running in June, with the rate of growth improving to a 21-month-high, linked to higher new work intakes, better market confidence and promotional activities. New work inflows improved for the seventh consecutive month, although the rate of expansion eased to its weakest since last December. Despite the generally upbeat statement, S&P Global said the outlook for the manufacturing sector remained ‘tepid’ at the end of the second quarter. Around 48% of survey respondents forecast output to rise over the coming year, slightly below the combined level of those expecting either stagnation, 44%, or contraction, 9%. Rob Dobson, director at S&P Global Market Intelligence said while the UK manufacturing sector ended the second quarter on a positive note, ‘sustaining the upturn is becoming a bigger concern’. ‘Manufacturers are currently benefiting from client strategic stockpiling, as they safeguard against supply chain disruptions and expected price rises. A drop in the rate of growth of new work intakes suggests this boost is already starting to fade,’ he added. He said many businesses are concerned about geopolitical tensions and uncertain over the future course of government policy. On pricing, the report showed average input prices rose markedly in June, although the rate of increase was the weakest since March. The S&P Global UK manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 650 manufacturers. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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