US tariff fears negatively impact UK factory exports in April, leading to decline in foreign demand

From Yahoo Finance: 2025-05-01 04:38:00

British factory exports saw a sharp decline in April, impacted by Trump’s trade war and UK tax hikes. Foreign demand fell in the US, Europe, and China, with the fastest decline since May 2020. UK manufacturing PMI remained below growth threshold for the seventh month, but slightly improved from March.

Manufacturing output fell for the sixth consecutive month, leading to a decrease in business morale among manufacturers. Input costs rose at the fastest pace since December 2022, attributed to higher wage costs and global supply chain uncertainties. Staffing contracted for the sixth month, linked to government policies on social security and minimum wage.

The IMF downgraded UK economic growth forecast for 2025 to 1.1%, but predicted stronger growth compared to France, Italy, or Germany. The Bank of England is expected to cut interest rates in response to the tariffs’ impact on inflation and growth. Manufacturers face challenges from rising costs and trade uncertainty, impacting global markets.

Read more: US tariff fears hit UK factory exports in April, PMI shows