Manufacturing output edges up but sector faces headwinds

Britain’smanufacturingsector saw some forward momentum last month, but the industry remains “subdued” as Brexit woes and global trade wars continue to weigh, a key report has revealed.

The closely watched Markit/ Cips UK manufacturing purchasing managers’ index (PMI) showed a reading of 54.4 last month, higher than the 54.3 for May. Any reading above 50 denotes growth.

The latest report noted that the sector remained “subdued” as growth of new orders improved only mildly, with the improved figure put down to inventory build-ups and backlog clearing.

Rob Dobson, director at IHS Markit, said: “The UK man- ufacturing sector ended the second quarter on a subdued footing.

“The trend in demand will need to stage a much firmer rebound if a further slowdown in output growth is to be avoided.

“How likely such a revival is remains in some doubt, with the June survey also seeing business optimism drop to a seven-month low amid rising concerns about possible trade tariffs, the exchange rate and Brexit uncertainty.”

Howard Archer, chief economic adviser at the EY Item Club, said: “The survey points to the manufacturing sector struggling to regain momentum in June after a muchweakened performance so far in 2018 compared to the robust performance seen in the second half of 2018.” 0 Howard Archer: sector struggling to regain traction