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

Royal Mail chief warns Labour: support postal reforms...

September 7, 2024

Czech Billionaire Plans £400m Overhaul for Royal Mail,...

May 31, 2024

Ministry of Foreign Affairs of Ukraine Started Call-Center...

August 8, 2022

UK Holds Competitive Edge in Green Products, IPPR...

May 15, 2024

The Future Of Titration In Business: Automation And...

September 15, 2023

The Top 5 Cybersecurity Threats and How to...

December 27, 2024

Airbnb shows travellers are bucking recessionary fears

February 15, 2023

Business owners seek to invest, sell and expand...

June 20, 2023

Crypto Gambling at Wazamba Casino: Feature & Advantages

January 22, 2024

Bank lending rules ‘could harm UK small businesses’

May 8, 2024

    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

    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025
    • TIMELINE: Inside the evolving relationship between Trump and Musk from first term to this week’s fallout

      June 7, 2025
    • Deadly drone wars are already here and the US is horribly unprepared

      June 7, 2025
    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,564)
    • Stocks (3,136)
    • 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