The PMI sat at 54.3 – down from 56.3 in May and the lowest reading in three months. However, the average PMI level over the second quarter as a whole (55.9) was the best registered for three years.
Markit said that the end of the second quarter saw manufacturers report further expansions of both production and new order volumes.
However, rates of increase decelerated, as growth of new business slowed in both the domestic and export markets. Price pressures also continued to ease, with rates of inflation in input costs and output charges down further from highs reached at the start of the year.
Rob Dobson, senior economist at IHS Markit, said: “The UK manufacturing sector largely weathered the uncertainty of a general election and start of formal Brexit negotiations to eke out further output growth at the end of the second quarter. However, the rate of expansion eased again in June, with growth weakening across the consumer, intermediate and investment goods industries.
“Although the sector should still improve on its lacklustre opening quarter performance, this will be to a lesser extent than hoped for after solid growth in April and May. The main factor driving the broad slowdown in June was a steep easing in the rate of increase in new order intakes.”
George Nikolaidis, senior economist at EEF, said: “Despite a broad-based slowdown in the rate of expansion in June, manufacturing activity for the last quarter still came in at a three year high, pointing to a solid contribution from the sector to growth. This adds to recent data over the past few months indicating that industry will continue to support the UK economy by providing a counterweight to slowing services output.”
