LONDON, June 2 (Xinhua) -- Britain's manufacturing sector continued the streak of contraction in May amid weak global market conditions, trade uncertainty and rising employment costs, data released by S&P Global showed on Monday.
The seasonally adjusted UK Manufacturing Purchasing Managers' Index (PMI) stood at 46.4 in May, up from 45.4 in April, S&P Global said, noting that the figure has nonetheless signalled a deterioration in operating performance in each of the past eight months.
The data further showed that the country's manufacturing production contracted for the 7th consecutive month in May, while new business volume decreasing for the 8th month, as demand for new work fell both domestically and overseas.
New export orders further dropped in May due to tariff uncertainty, government policy and global market turbulence, with foreign demand falling for the 40th successive month.
Business confidence remained subdued as manufacturers continued to raise concerns that turbulent trade conditions, the weak economic outlook and rising cost burdens will make market conditions tough during the year ahead.
"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," said Rob Dobson, director at S&P Global Market Intelligence.
"Trading conditions remain turbulent both at home and abroad, making either a return to stabilization or a sink back into deeper contraction likely during the coming months," Dobson added.
