Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK manufacturing growth slows amid shipping delays and rising costs

by July 2, 2024
July 2, 2024
UK manufacturing growth slows amid shipping delays and rising costs

UK manufacturing growth moderated in June as shipping delays and increased freight costs impacted exports. Despite this, companies remain optimistic about a market recovery, although demand from North America, China, the Middle East, and parts of Europe has declined.

For the second consecutive month, factories increased activity, but at a slower pace than in May. According to the S&P Global/CIPS UK purchasing managers’ index (PMI), the sector’s output measured 50.9 in June, slightly down from May’s 22-month high of 51.2. A reading above 50 indicates expansion.

The PMI survey revealed increased production volumes driven by a rise in new domestic orders and ongoing efforts to clear work backlogs. However, new export orders fell for the 29th consecutive month, with declines noted from the United States, China, and mainland Europe.

Rob Dobson, director at S&P Global Market Intelligence, highlighted the positive domestic market performance: “The UK manufacturing sector is experiencing its strongest growth in over two years. June’s output and new order growth were robust, mirroring May’s highs. The domestic market continues to be a rich source of new contract wins, but the weak export performance is concerning, with manufacturers struggling to secure new business in key markets.”

S&P attributed part of the export decline to shipping delays and rising freight costs, often caused by attacks on container vessels in the Red Sea by Houthi rebels. Companies also reported price increases in inputs such as energy, food, metals, packaging, paper, plastics, and timber.

Peter Arnold, chief economist at EY UK, commented: “June saw another strong month of output growth, with only a slight dip from May’s high. New orders are growing steadily, but global shipping bottlenecks have pushed transport costs up, leading to the highest input price inflation since January 2023. While shipping disruptions have raised inflation concerns in 2024, core goods inflation has remained lower than expected, which may allow the Bank of England to cut interest rates soon.”

Rob Wood, chief UK economist at Pantheon Macroeconomics, noted the sector’s resilience: “Despite downward revisions to output, the figures show the sector is recovering solidly.”

Read more:
UK manufacturing growth slows amid shipping delays and rising costs

0
FacebookTwitterGoogle +Pinterest
previous post
UK house prices see slight uptick in june despite high mortgage costs
next post
Rupert Murdoch’s Fox Corporation launches Tubi to challenge Netflix in UK

You may also like

Oasis reunion tour set to deliver £940 million...

May 22, 2025

Cash flow becomes top priority for small businesses...

October 27, 2022

Jeremy Hunt hints further tax cuts may be...

January 19, 2024

British solar innovator Naked Energy opens £30m funding...

September 25, 2023

Getting To Know You: Susannah Davda, Founder, The...

November 22, 2023

Food industry lobbying threatens UK household recycling reforms

June 2, 2023

Inheritance tax hits record £8.2bn as frozen thresholds...

April 24, 2025

Young British Workers Exploit Sick Leave, Outnumbering Migrant...

May 27, 2024

UK economy showed no growth in February

April 13, 2023

A dark day for British business: Unraveling the...

September 20, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Blue state Republicans threaten rebellion if Senate changes key provision in Trump’s ‘big, beautiful bill’

      June 5, 2025
    • Ricketts, Fetterman team up for crackdown on China’s attempts to purchase US farmland

      June 5, 2025
    • Hamas working to ‘sabotage’ Trump-backed aid group with ‘fake news’: Israeli official

      June 5, 2025
    • Longtime Trump loyalist flips on GOP’s ‘big, beautiful bill’

      June 5, 2025
    • Supreme Court rules Wisconsin unconstitutionally discriminated against Christian charity

      June 5, 2025
    • Trump touts ‘very positive’ breakthrough with Xi after slamming China for trade violation

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,529)
    • Stocks (3,128)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved