UK manufacturing PMI slips to five-month low but hiring strengthens

LONDON, Sept 1 (Reuters) - Activity ‌growth in ​Britain's manufacturing ​sector slowed slightly in August to its weakest since March but factories hired workers at the fastest ‌pace in more than two years, monthly purchasing managers' index ⁠data showed on Tuesday.

• S&P Global's headline purchasing managers' index for British ‌manufacturing slipped to 51.7 in ‌August from 51.9 in July, a slightly smaller decline than the drop to 51.5 reported in provisional or 'flash' data last month. ​Readings above 50 represent growth.

• "Higher levels of production were underpinned by increased intakes of new work, with demand from both ⁠domestic and overseas clients improving," S&P Global said.

• Growth in the PMI's manufacturing output ​component slowed to the weakest since April, as the fastest expansion in two years for investment goods was ​offset by weaker growth for intermediate ‌goods and a drop in consumer goods production.

• Employment expanded at the fastest pace in two years, ⁠due to rising production requirements, improved new orders and a desire to reduce backlogs of work.

• Optimism about the year ahead rose to a ⁠six-month high, reflecting stronger sales, reduced geopolitical uncertainty and lower trade tensions.

• Manufacturers ​raised prices at the slowest rate since March, while their costs rose by the least since February, though tariffs, geopolitical conflict and shipping disruption ‌continued to push up prices.

• The most recent official data showed manufacturing output grew 0.5% in the ‌year to the end of June, while factory gate prices increased ⁠by an annual 3.1% in ‌July.

• The PMI data ​was based on responses from firms between August 12 and August 25.

(Reporting by David Milliken; Editing by ‌Hugh Lawson)

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