New orders at fastest rate in 2 years in June

New orders contracted at the fastest rate in two years in June, according to a survey that shows signs of a stalling economy.

The manufacturing purchasing managers' index fell PMI to 52.8 from 54.6 in May, downwardly revised from a preliminary flash reading for June of 53.4.

The survey showed that factory output barely grew and manufacturers were their gloomiest about the outlook since May 2020.

Price pressures, while still elevated, eased further from recent all-time highs.

The PMI also underlined the risk of a slowdown or a recession in Britain, with manufacturers in other major European countries struggling as inflation surges towards double-digit levels.

The survey compiler S&P Global said firms raised concerns about flat domestic demand, weaker export markets, inflationary pressure, and the increased cost of living on consumer demand and supply chain issues.

The Bank of England Governor Andrew Bailey said on Wednesday that there were signs of an economic slowdown in Britain, and that the central bank might not have to act forcefully to get inflation under control.

According to the latest official data, manufacturing output in April was 2% less than its pre-pandemic level.