Although down from May's final reading of 53.1, the sector remains in expansion (for the 10th straight month). Watch the new orders and prices paid components as well.
Manufacturing in the United Kingdom dipped in June, posting a three-month low, reported to the seasonally adjusted IHS Markit/CIPS Purchasing Managers' Index (PMI). Any figure greater than 50.0 indicates an overall improvement of the sector.
Exports orders also made a significant positive contribution for the month.
Meanwhile, problems existed elsewhere as employment stagnated. However, and as in the US, Markit reports that, "Cost pressures continued to ease in June". Firms mentioned forecasts of greater new work as the key reason behind the latest rise in inventories.
British factories were left out of a demand-driven surge in activity across much of Asia and Europe in June, as weakness in sterling failed to translate into export growth, surveys showed. This was the weakest expansion in the survey since February this year.
"That said, challenging economic conditions, water shortages and the upcoming implementation of the goods & services tax (GST) reportedly hampered growth", the report added. Total new orders rose to 51.0, the highest level in three months, up from 50.3 in May, with new export orders also increasing.
"This speculation could further support the pound if economic growth remains stable, inflation rises further, and business investment and wage growth pick up".
With the first estimates of Q2 GDP for most major economies expected to be out by the end of the month, the data coming out over the next couple of weeks is expected to shine some light on how they fared over the last three months.
Construction PMI data should deliver a headline reading of 55.0 according to a survey of economists. "Driving the upturn was again expansions in output and new business". "A number of panellists predicted a turnaround in client demand", he said. That said, growth eased to an eight-month low.
Also in the U.S., drilling-rigs-in-action numbers fell last week for the first time in 24 weeks, breaking the record streak of increases. Likewise, output charges rose only slightly and at a below-trend pace.
"June saw a continuation of the recent strong performance of the Spanish manufacturing sector, with growth remaining elevated".