Final data published by S&P Global/CIPS showed that the UK manufacturing sector continued to struggle in April, with the S&P Global Manufacturing PMI at 45.4, marking the seventh consecutive month below the neutral 50.0 level. Although slightly improved from March’s 17-month low of 44.9, the figure reflects a sustained downturn. Economists had expected the index to decline to 44.0.
Production declined again due to falling domestic and overseas demand, with new export orders dropping at the sharpest rate in nearly five years. Weakened client confidence, trade uncertainty—including potential U.S. tariffs—and subdued global demand were cited as key drags.
Investment goods producers were hit hardest, reflecting a slump in capital goods demand. Total new orders fell for a seventh straight month, while backlogs of work declined at the fastest pace since late 2023.
Business sentiment sank to a 29-month low, with only 47% of firms expecting output to rise over the coming year. Employment dropped for the sixth month in a row, with firms citing rising costs—such as higher national insurance and minimum wage hikes—as key reasons for job cuts, hiring freezes, and redundancies.
Input cost inflation surged to its fastest pace since December 2022, driven by higher energy costs, supplier wage pressures, and continued global supply disruptions. Output prices rose at the quickest rate in over two years as manufacturers passed on some of these increases to customers.
Despite weakened demand, supply chain delays persisted for the 16th consecutive month, further complicating operations and reinforcing the sector’s challenging environment.