Disclaimer: The information provided on the Timber Exchange Market Data Hub is sourced from a variety of publicly available data sources and confidential sources that have not been independently verified. Timber Exchange is not responsible for any expenses, damages, losses, or costs incurred as a result of using or relying on the information provided on this site. By using the Timber Exchange Market Data Hub, you agree to use the information at your own risk and acknowledge that any decisions made based on the information provided are done so solely at your own risk.

UK manufacturing growth slows due to shipping delays impacting exports

Posted on July 5, 2024 |

British manufacturing growth slowed in June from May's 22-month high due to shipping disruptions in the Red Sea, reducing overseas demand.

The UK Manufacturing Purchasing Managers' Index from S&P Global fell to 50.9 in June from 51.2 in May, below the preliminary June reading of 51.4.

Issues such as the Red Sea crisis, low supplier stocks, limited vendor capacity, and port problems caused longer lead times.

Although output and overall new orders grew at the fastest pace in 2 years, export orders dropped for the 29th consecutive month due to shipping delays and high freight costs.

Since November, international shipping has been disrupted by attacks from Yemen's Houthi militants, prompting many vessels to avoid the Red Sea route and take a longer path around Africa.

The British manufacturing sector, which makes up 10% of the economy, saw a quarterly growth of 1.1% in the first quarter of 2024, its second-strongest expansion since early 2021.

Ongoing shipping delays and rising freight costs continue to challenge the sector's export performance.

Previous Next