LONDON — Britain's manufacturing sector has continued to expand for a ninth consecutive month, although the pace of growth eased in July as geopolitical tensions and softer demand weighed on factory activity.

The latest S&P Global UK Manufacturing Purchasing Managers' Index (PMI) was revised to 51.9, down from 52.5 in June and below the earlier flash estimate. A reading above 50 still signals expansion, indicating that British factories continue to grow despite mounting challenges.

Manufacturers reported slower employment growth, reduced purchasing activity and lower inventory levels, while easing supplier delivery times suggested that some supply-chain pressures have begun to improve. However, uncertainty linked to events in the Middle East and higher business costs continued to affect confidence.

Economists said the figures point to a manufacturing sector that remains resilient but is entering a more cautious phase. Export demand and investment decisions are expected to remain closely tied to global economic conditions over the coming months.

Although momentum has softened, the UK's factory sector has avoided contraction for most of 2026, offering a positive signal for industrial production and the wider economy. Businesses will now be watching whether improving supply conditions can help support stronger output during the remainder of the year.