UK manufacturing sector improves after trade deal with US

Bloomberg says a trade deal between the UK and the US has resulted in an improvement in the British manufacturing sector. The two countries’ agreement was reached last month, it maintained a 10% tariff on most goods sent to the US. However, duties on automobiles were cut, and import levies on steel and aluminum were removed.

Following the deal, S&P Global’s manufacturing purchasing managers’ index for the UK rose to 46.4 in May and reached a three-month high. April’s figure stood at 45.4. Despite exceeding the forecast of 45.1, the index remained below the 50 mark, separating the growth of the sector from its contraction.

Nevertheless, the rise indicates that British manufacturers may have overcome the downturn caused by the US trade policy, Bloomberg says.

Additionally, S&P Global Market Intelligence reports growth in indices that track output and new orders in the UK. At the same time, average delivery times increased by the most this year. This could be a sign of tariff-driven supply chain disruptions.