PwC comments on the S&P Global UK Manufacturing PMI - July 2024

Cara Haffey, Manufacturing and Automotive lead at PwC UK said:

“Not only did May see a PMI reading of 51.2 - demonstrating growth twice in the last three months, but also saw positive performance across all product categories and all three size definitions for the first time in over two years. Stability is becoming a recurring theme in the sector, as businesses seek to capitalise on more predictable costs with inflation starting to become relatively more manageable.

“Demand was seemingly centred on domestic markets, as the level of new business placed with UK manufacturers rose for the second time in the past three months and to its strongest level since April 2022. This perhaps demonstrates the move to localise supply chains in order to navigate the ongoing disruption to key global logistics routes, with new export orders falling for the twenty-eighth month in a row. 

“In parallel, the PMI noted the highest degree of sector optimism for production over the next year since February 2022. Initial, but cautious signs of economic recovery will no doubt be key signals to support future growth and investment, but for exporters, or those with global supply chains, customers or partners - concerns have not yet subsided.”