British industrial exports fall amid pressure from US tariffs and domestic problems

In March, the purchasing managers’ index in the UK manufacturing industry from S&P Global fell to a 17-month low, reaching 44.9. In February, its value amounted to 46.9. Thus, the index went even deeper into the territory of contraction below the threshold level of 50 points.

The sharpest decline in new exports since August 2023, caused by trade tensions between the US and Europe, served as a particular sign of deterioration.

As Bloomberg notes, the UK industry is pressured by uncertainty in global trade and domestic concerns over an increase in payroll taxes and a higher national minimum wage.

The coming weeks will be crucial as the US administration prepares to announce a series of new tariffs on April 2. As Bloomberg suggests, the UK is not the main target of the new trade restrictions. However, the country's factories could still be affected by the trade tensions as global demand weakens.