Proactive Investors - Manufacturing in the UK unexpectedly slowed in June, sliding back from May's 22-month high as the disruption from the Red Sea weakens demand from overseas customers.
S&P Global's UK Manufacturing PMI fell to 50.9 last month, down from 51.2 in May and lower than the market consensus of 51.4.
Despite the drop, activity remained ahead of the 50 mark, which separates the industry's performance between growth and contraction.
S&P claimed the industry's backdrop remained positive in June, with new orders and output lifting despite employment falling, delivery times increasing and input costs rising at the fastest rate since January 2023.
"Shipping issues resulting from the Red Sea crisis, low stocks at suppliers, insufficient vendor capacity and port issues all led to longer lead times," S&P said.