Oil prices have seen a decline as technical negotiations are reportedly underway in Doha, with Qatar and Pakistan acting as mediators. This comes as the UK’s manufacturing activity experienced a slowdown in June, despite initial boosts from companies stockpiling due to anticipated price increases and ongoing supply chain issues linked to the Middle East conflict.
According to the final reading of S&P Global’s purchasing managers’ index for June, the figure dropped to 52.5, below the preliminary estimate of 53.1 and May’s reading of 53.9. Readings above 50 signify an expansion in activity, indicating that while the UK manufacturing sector ended the second quarter positively, sustaining this growth is becoming increasingly concerning.
Impact of Stockpiling on Manufacturing Activity
Manufacturers in the UK have been benefiting from strategic stockpiling by clients, aimed at safeguarding against supply chain disruptions and expected price hikes. However, a noticeable decline in the rate of growth of new work intakes suggests that this boost may be beginning to wane.
