UK manufacturers' input cost inflation up to 17-month high

By Sahika Olgun

ISTANBUL (AA) - UK manufacturers saw further growth in June but input cost inflation reached a 17-month high, S&P Global said Monday.

The UK's manufacturing upturn continued at the end of the second quarter, as the manufacturing Purchasing Managers Index (PMI) was at 50.9 in June, down from 51.2 in May – a 22-month high.

The rate of output growth was solid and only slightly below the 25-month high seen in May, a press release said.

On the costs front, June saw average purchase prices rise for the sixth successive month and at the quickest pace since January 2023.

New business intake increased for the third time in four months, reflecting a rise in new orders, improved demand, increased market activity, product promotions, and some customers destocking, it said.

The continued upturn was mainly driven by the domestic market, as inflows of new work from overseas declined for the 29th month in a row.

While 57% of some firms expect production to grow in the coming year, other firms expect the uncertainty stemming from the British general elections – set for Thursday – to subside after the elections conclude.

Rob Dobson, director at S&P, said: “The UK manufacturing sector is enjoying its strongest spell of growth for over two years, with June seeing output and new order growth sustained at robust rates similar to May's recent highs.

"Although June also saw manufacturers maintain a relatively high degree of optimism towards the future, this was not sufficient to lessen their focus on cost minimization and cash flow protection."