UK PMI Manufacturing at Four Month Low, but Faster Output Growth Points to Resilient Recovery

UK manufacturing showed a mixed but generally resilient picture in July. The final S&P Global Manufacturing PMI slipped to 51.9 from 52.5, a four-month low, but remained above the 50 expansion line for the ninth straight month. The headline weakness was offset by faster factory output growth, which reached its strongest pace in nearly two years, driven by firmer domestic demand and improving export orders. Input cost inflation eased to a five-month low as supply-chain delays fell to their weakest since the Middle East conflict began, which should help margins and reduce near-term price pressure. Hiring nearly stalled, but backlogs of work rose for the first time in more than four years, hinting that labor demand could improve if orders stay firm. Overall, the report supports a cautious positive view on UK industrial activity, though smaller firms remain under pressure and business confidence is still subdued amid geopolitical and policy uncertainty.