UK’s Manufacturing Mojo Keeps Spinning
For the second straight month, the UK’s factories have been on a roll, smashing their June output numbers with a fierce burst of robust sales. It’s the kind of “good news” that keeps the coffee flowing in boardrooms.
What the Numbers Are Saying
- SP Global/CIPS PMI – 50.9 in June (any figure above 50 means growth, so that’s a win!).
- Production volumes went up.
- New order intake is on the rise.
- Backlogs are getting whisked away like yesterday’s pastries.
“The UK manufacturing sector is in the best growth streak in two years,” says Rob Dobson, director at S&P Global Market Intelligence. He adds, “Output and new orders are dancing at robust rates in June—yes, that’s the same super‑good level we saw in May.”
Domestic vs. Export – The Low‑down
The local market is thriving, painting a bright picture for fresh contract wins. However, exit sales have been drifting like a tepid tide: manufacturers in the US, China, and mainland Europe are finding new business a real challenge.
Wisdom from the Industry
Richard Powell of MHA notes: “Manufacturing PMI is steady, but that’s normal with the election brewing. Interest rates are stubbornly high, so firms are on pause until we see cuts.” He points out that even once rates soften, the splash of investment will be delayed.
Key hurdles that future leaders will need to tackle:
- Labour shortages – widespread and not a quick fix.
- Export challenges to the EU, our biggest trading buddy, post‑Brexit.
- Lack of a concrete industrial strategy—manufacturers have been shouting for it for years.
There’s hope that the upcoming government will answer the call, as party manifestos now echo the need for an industrial strategy. “Manufacturers have been doing the talking for ages; maybe next time they’ll actually listen.
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