British manufacturing activity growth hits 16-month low in May

British manufacturing activity growth hits 16-month low in May

British manufacturing activity expanded in May at the weakest rate since January 2021, as producers of consumer goods struggled against a worsening cost-of-living crunch, a survey showed on Wednesday. The final estimate of the S&P Global UK Manufacturing Purchasing Managers’ Index (PMI) fell to 54.6 in May from 55.8 in April, unchanged from a preliminary reading. The survey adds to signs that Britain’s economy has been struggling for momentum as households face surging energy bills. Last week finance minister Rishi Sunak announced 15 billion pounds ($19 billion) of aid for households, on top of 22 billion pounds of broader assistance promised earlier this year. “With the poor results for the consumer sub-sector suggesting that the impact of the squeeze on household finances is beginning to make its mark, the outlook for the manufacturing sector is poor,” said Martin Beck, chief economic adviser to the EY ITEM Club consultancy. Meanwhile the British retailers raised prices at the fastest pace in more than a decade last month, driven by the rapidly rising cost of food and increased energy and transport costs for stores, an industry body said on Wednesday. The British Retail Consortium (BRC), which represents supermarkets and other large retail chains,