FX.co ★ UK Manufacturing Downturn Eases in July

The S&P Global UK Manufacturing PMI edged up to 48.2 in July 2025 from 47.7 in June, exceeding market expectations which stood at 48, according to preliminary data. Although the sector remains in contraction, the latest figures indicate a more moderate decline in business conditions since January, as production levels have stabilized—thus halting an eight-month sequence of decreasing output. Nevertheless, manufacturers continue to face numerous challenges, especially in crucial export markets, with U.S. tariffs leading to postponed investment decisions. New orders have weakened, and workforce reductions have accelerated. On the pricing side, both input costs and selling prices continue to rise. Looking forward, business confidence remains subdued. While certain companies have seen an increase in demand due to heightened defense spending, a majority are still contending with persistent hurdles from sluggish domestic activity, geopolitical instability, and uncertainty in global trade.