UK manufacturing growth slows in July
By Michele Maatouk
Date: Monday 03 Aug 2026
(Sharecast News) - Growth in the UK manufacturing sector eased in July, according to a survey released on Monday.
The S&P Global manufacturing purchasing managers' index fell to a four-month low of 51.9 from 52.5 in June, coming in below the flash estimate of 52.8.
Still, it was the ninth month in a row the index was above the 50.0 mark that separates contraction from expansion.
Rob Dobson, Director at S&P Global Market Intelligence, said: "July brought further encouragement for the UK manufacturing sector, as rates of growth in output, new orders and new export business all accelerated. The increase in production was the fastest in almost two years, as improving market conditions led to better hit rates in securing new contracts.
"There was also positive news on the price and supply fronts. The rate of increase in input costs slowed sharply to a five-month low as supply chain delays eased to their lowest since the outbreak of the war in the Middle East. Better resource availability and supplier reliability will hopefully provide further respite to squeezed supply chains in the months ahead, though developments in the Middle East will be key to supply and price developments in the coming weeks.
"These positive price and demand trends were not fully reflected in the labour market, with the upturn in manufacturing hirings grinding to a near halt in July, but the first rise in backlogs of work in over four years suggests employment could pick up in the coming months. This would be assisted if business optimism recovers from its current subdued level. Hopefully progress relating to geopolitics, global trade tensions and the direction of the new UK government's industrial and tax policies will aid, and not hinder, this process."
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