{
  "id": 4843391,
  "title": "Manufacturing growth loses momentum as economic risks loom",
  "url": "https://urgent.news/2026/09/01/manufacturing-growth-loses-momentum-as-economic-risks-loom",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-01T10:41:48.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/manufacturing-growth-loses-momentum-as-economic-risks-loom/"
  },
  "original_language": "en",
  "account": "The manufacturing industry experienced a slowdown in growth during August, as smaller companies found it difficult to secure new orders. The Purchasing Managers' Index (PMI) for the sector fell from 51.9 in July to 51.7 in August, suggesting that activity had decreased. Despite this drop, the PMI remained above the neutral 50 mark, indicating that the sector's output had grown. Over the past 10 months, the PMI has shown consistent improvement following a period of output contraction in much of 2025.\n\nRob Dobson, director at S&P Global, expressed cautious optimism, noting that business confidence had reached a six-month high. Job creation in the manufacturing sector reached its strongest level in two years, providing a positive indicator for the country's employment landscape. Dobson suggested that the slowdown in the PMI was primarily due to reduced emphasis on maintaining precautionary stockpiles as economic uncertainty diminished, particularly as both domestic and foreign clients demonstrated a willingness to spend, albeit with considerable caution.\n\nThe increase in employment was attributed to higher order intake and efforts to clear backlogs, according to researchers. However, larger manufacturers outperformed smaller producers, with the latter experiencing declines in output and new order intakes. Cara Haffey, who oversees industrials at PwC UK, highlighted that businesses would be more concerned about sustaining recent positive results, emphasizing the importance of keeping energy costs low and capitalizing on improved demand.\n\nHaffey stated that ensuring a smooth transition of policy commitments into lower costs, greater certainty, and stronger incentives for investment would be critical for the sector's future. Matt Swannell, chief economic adviser to the ITEM Club, warned that rising energy prices would continue to impact business costs. Swannell predicted that the rest of the year would be challenging for the manufacturing sector, noting that the conflict in the Middle East remains a significant source of uncertainty.",
  "summary": "The manufacturing sector suffered a slowdown in growth over August as smaller firms struggled to clinch new orders. S&P Global researchers suggested growth in the manufacturing sector eased in August as the purchasing managers’ index (PMI) reading dropped from 51.9 in July to 51.7. The reading remains above the neutral 50 mark, indicating that activity [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}