UK manufacturing activity hits 4-year high in May

UK manufacturing activity rose to its highest level in four years in May, extending its expansion streak despite mounting cost pressures and supply chain disruptions, S&P Global said Monday.

The seasonally adjusted S&P Global UK Manufacturing Purchasing Managers’ Index (PMI) edged up to 53.9 in May from 53.7 in April, remaining above the 50-point growth threshold for a seventh consecutive month.

The expansion was driven by stronger production and new orders, while export demand improved, with manufacturers reporting increased sales to China, Europe, Japan, North America, and South Korea.

S&P Global said manufacturers continued to face steep increases in input costs, with purchasing price inflation accelerating to its fastest pace in nearly four years.

Supply chains also remained strained, with firms citing delivery delays linked to the Middle East conflict and restrictions affecting transit through the Strait of Hormuz.

Rob Dobson, economics director at S&P Global Market Intelligence, said the sector's recovery gained momentum in May as both output growth and business confidence climbed to three-month highs.

However, he cautioned that the durability of the upturn remains uncertain, noting that some recent growth was fueled by manufacturers and customers bringing forward purchases to avoid expected price increases and supply disruptions.

Dobson said momentum could weaken once customers complete precautionary stock-building, while geopolitical uncertainty and risks to key shipping routes continue to cloud the outlook.