Manufacturing Contracts Again as Confidence Falters

Manufacturing Contracts Again as Confidence Falters

UK Manufacturing Stumbles Again as US Tariffs Bite

It’s a rough patch for UK factories. The latest data shows the sector shrinking once more in May, a re‑set back that’s keeping the recovery hot under the collar.

Numbers That Speak for Themselves

  • May PMI reading: 46.4 (a lift from 45.4 in April).
  • Still below the 50‑point mark that signals growth.
  • Output, new orders and exports all keep dropping even as the index nudges higher.

What the Experts Say

Rob Dobson from S&P Global Market Intelligence warns this is no walk in the park:

  • Turbulent market conditions.
  • Trade uncertainties, courtesy of US tariffs.
  • Low client confidence.
  • Rising wage costs tied to taxes.

He does point out a glimmer of hope. Over the past two months, the PMI has been inching upwards, suggesting the slump might be easing.

Is It Really a Silver Lining?

While the numbers hint that the downturn could be less painful than the flash estimates suggested, investors remain on a tightrope. Growth will hinge on how these obstacles play out. Stay tuned, because the story’s still unfolding.