[UK Manufacturing Activity Slows Despite Stockpiling Boosts Output] PMI data shows that UK manufacturing activity slowed in June despite a boost in output from companies stockpiling goods in anticipation of rising prices and supply chain disruptions caused by Middle East conflict. The final reading of the UK manufacturing PMI fell to 52.5 in June, down from the preliminary reading of 53.1 and May's 53.9. A reading above 50 indicates expansionary activity. The survey showed that the output sub-index rose to 52.6 (previous reading 52.2), the highest level since September 2024. However, growth in new orders slowed significantly, consistent with the findings of a survey released last week by the Confederation of British Industry. S&P analyst Rob Dobson said, "UK manufacturing ended the second quarter of the year positively." "Whether this momentum can be sustained is increasingly being watched. Currently, manufacturers are benefiting from strategic stockpiling by customers who are looking to hedge against supply chain disruptions and anticipated price increases. But the slowdown in the growth rate of new order intake suggests that this boost is beginning to wane."
