Investing.com - Activity in the UK manufacturing sector ticked higher but remained subdued last month, according to a closely watched business survey released on Monday.
Research firm IHS Markit said its manufacturing purchasing managers’ index edged up to 54.4 in June, compared to forecasts for a reading of 54.1.
The prior month’s reading was revised down to 54.3 from a previously reported 54.4.
The upturn remained broad-based during June, the report said, as output and new orders rose. However, the overall rate of expansion in manufacturing output slowed as new order growth increased only slightly.
Business optimism dropped to a seven-month low amid rising concerns about possible trade tariffs, the exchange rate and Brexit uncertainty.
“The UK manufacturing sector ended the second quarter on a subdued footing," said Rob Dobson, director at survey compiler Markit.
"The turnaround in performance since the start the year has been remarkable, with impressive growth rates late last year turning into some of the weakest rates of expansion seen over the past two years in recent months," he added.
"With industry potentially stuck in the doldrums, the UK economy will need to look to other sectors if GDP growth is to match expectations in the latter half of the year.”