Manufacturing in the United Kingdom and Japan Shows Different Trends

• Manufacturing in the United Kingdom showed signs of contraction in July.
• Japan experienced a contraction in manufacturing due to weak demand.
• Optimism among Japanese manufacturers is increasing, despite the challenges.

This is reported by The Yomiuri Shimbun, The Yomiuri Shimbun.

In July 2025, manufacturing in the United Kingdom experienced signs of contraction. According to S&P Global’s survey data, the PMI index for British manufacturing rose to 48.0, compared to 47.7 in June. Although the indicator remains below 50, indicating contraction, there are some positive signals, including an increase in expectations regarding future manufacturing.

However, companies indicate weak demand both from the domestic market and abroad due to economic uncertainty and high labor costs. Manufacturing contracted for the ninth consecutive month, and new orders again decreased, which was exacerbated by the influx of tariffs imposed by the USA.

At the same time, in Japan, manufacturing indicators returned to contraction. The PMI index fell to 48.9 in July from 50.1 in June, which also indicates a reduction in manufacturing. Many companies noted a decrease in new orders, which led to a reduction in manufacturing. However, despite the overall decline, some manufacturers continued to increase the number of employees, although the pace of job creation has fallen to the lowest level in three months.

Optimism among Japanese manufacturers has increased over the past six months, as they expect improvements in demand conditions and a reduction in trade risks in the near future.

Tags: Europe/Economy