Jul 01, 2022 04:47AM ET
By: AnalysisWatch
British manufacturing lost more momentum in June than previously thought as new orders shrank at the fastest pace in two years, according to a survey that reinforced signs of slack in the economy.
The S&P Global UK Manufacturing Purchasing Managers' Index fell to 52.8 from 54.6 in May, a downwardly revised reading from June's preliminary "flash" reading of 53.4.
The survey showed that factory output barely grew and manufacturers were the gloomiest about the outlook since May 2020.
Pricing pressures, while still elevated, eased further from recent record highs.
Overall, the PMI highlighted the risk of a sharp slowdown or recession in the UK, with manufacturers in other major European countries experiencing similar difficulties as inflation rises towards double-digit levels.
Firms raised concerns about robust domestic demand, weaker export markets, inflationary pressures, the effect of higher living costs on consumer demand, and supply chain issues.
On Wednesday, Bank of England Governor Andrew Bailey said the central bank may not need to act "decisively" to rein in inflation, adding that there were signs of an economic slowdown taking hold in the UK.
According to the latest official data, manufacturing output in April remained 2% below its pre-pandemic level.