China accuses US of ‘seriously violating’ trade war truce; UK factory output shrinks again – business live

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Britain’s factory sector may have “turned a corner” last month, despite another fall in manufacturing output and new orders.

The latest survey of purchasing managers at UK manufacturers found that the sector contracted again in May, but not by as much as initially feared.

Weak global market conditions, trade uncertainty, low customer confidence and cost pressures resulting from recent increases to UK employer NICs and minimum wages also contributed to clients’ reluctance to spend. That said, a recent bout of good weather did boost sales at some manufacturers.

“May PMI data indicate that UK manufacturing faces major challenges, including turbulent market conditions, trade uncertainties, low client confidence and rising tax-related wage costs. Downturns in output, new orders and new export business have continued, and business optimism has stayed subdued by the historical standards of the survey.

“Smaller manufacturers are experiencing the sharpest pinch, registering the steepest retrenchments in output and demand and seeing their confidence slump to a near record low. Job losses are also rising across manufacturing, with the rate of decline in employment gathering pace.