The UK Manufacturing Purchasing Managers’ Index (PMI) rose to a four-year high of 53.9 in May, up slightly from 53.7 in April. The UK PMI has remained above its no-change mark of 50.0, signalling expansion, for seven consecutive months.
All five PMI sub-components (new orders, output, employment, suppliers’ delivery times, and stocks of purchases) were at levels normally consistent with improving operating conditions in May. This was the first time such alignment has occurred since May 2022.
UK manufacturing production increased for the second successive month, led by expansions in the intermediate and investment goods sectors (while consumer goods output fell slightly). That said, there are signs that the recent growth acceleration could prove short-lived, as some manufacturers reported clients front-loading purchases to mitigate expected price rises and potential supply chain disruption.
The Global Manufacturing PMI posted 52.6 in May, unchanged from April, remaining above its neutral 50.0 mark for the tenth consecutive month. All five PMI sub-components were also at levels typically consistent with improving operating conditions.
Global manufacturing production rose for the tenth month running in May, with the pace of expansion the fastest since July 2021. Output increased across consumer, intermediate, and investment goods industries, reaching 58- and 53-month highs in the latter two respectively (though growth eased slightly in the consumer category). The strongest expansion was seen among investment goods producers.
While the data point to encouraging resilience in the manufacturing sector as the war in the Middle East extended into its third month in May, growth was in many cases supported by precautionary stock-building, as firms sought to purchase inputs ahead of potential shortages or price increases linked to the conflict. It is also worth noting that a rise in delivery times, normally seen as a positive signal reflecting strong demand, can in some cases instead reflect supply disruptions, for example due to the full or partial closure of the Strait of Hormuz. Business optimism also fell to a seven-month low.
In the euro area, the Manufacturing PMI declined from April’s near four-year high of 52.2 to 51.6 in May. The latest reading nevertheless remained among the highest recorded since mid-2022. Seven of the eight countries covered were in expansion, with France the exception, slipping into contraction amid declines in production, new orders, purchasing volumes, and stocks as the tailwinds from client stockpiling faded. Ireland and the Netherlands led growth, while expansion edged higher in Italy, Austria, and Greece, but eased slightly in Germany and Spain.
Elsewhere in Europe, trends were mixed. Most countries recorded expansion, though Poland and Romania remained in contraction, albeit with some improvement.
Across Asia, most countries remained in expansion, with Pakistan returning to growth after a brief dip in April.
In the Americas, the US recorded stronger growth, as did Colombia, while Canada edged lower but remained in expansion territory. Brazil returned to contraction in May, where it has been in 12 of the past 13 months, and Mexico remained in contraction for the ninth consecutive month, albeit with some improvement from April.
The joint strongest readings globally were seen in Sweden and Switzerland (57.3), while the weakest was Romania (48.3). The largest month-on-month improvement was recorded in Switzerland (+2.8 points), while the largest decline was in France (-3.1 points).
The individual S&P Global PMI reports are available to download on their website at https://www.pmi.spglobal.com/Public/Release/PressReleases and we also have a summary charts report which is available to download below. You should note that the PMI readings for Hungary, Sweden and Switzerland are not compiled by S&P Global but can be found with an appropriate internet search (it also means that they are not part of the global PMI calculation).