The UK manufacturing sector contracted further in August, with output falling for the tenth consecutive month amid weak demand, tariff uncertainties and subdued client confidence, a survey showed on Monday. The S&P Global UK Manufacturing Purchasing Managers' Index (PMI) fell to 47.0 in August from 48.0 in July, staying below the 50.0 threshold that separates growth from contraction for the eleventh month in a row. New orders dropped at the sharpest pace in four months, driven by weaker domestic demand and a 43rd straight monthly decline in export orders. Manufacturers cited cost pressures from higher minimum wages, employer national insurance contributions, rising energy costs, as well as concerns over future tax policy. Employment fell for a tenth successive month, while input price inflation hit its highest level since May, fuelled by shipping delays, global material shortages and supplier price hikes. Business optimism edged up to a six-month high but remained below its long-run average, with firms split between hopes of stabilising global markets and fears of rising costs eroding competitiveness. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
