Politics and Government Politics and Government

UK firms lose more momentum and cut staff in December in wake of budget, PMI shows


Published on 2025-01-06 06:00:49 - Reuters
  Print publication without navigation

  • British business activity growth slowed to a crawl in December and employers cut staffing at the fastest rate in almost four years as a slump in corporate morale after the government's budget rumbled on,

The UK's private sector experienced a contraction in December, with the S&P Global/CIPS UK Composite Purchasing Managers' Index (PMI) dropping to 46.8 from November's 50.7, signaling the first decline in activity since January 2021. This downturn was attributed to reduced demand, high interest rates, and concerns over the cost-of-living crisis, leading businesses to cut jobs at the fastest pace since the 2009 financial crisis. The services sector PMI fell to 46.6, and manufacturing PMI was at 45.3, both indicating contraction. The report highlighted a significant drop in new orders, with businesses also reducing their purchasing activity and inventory levels. Despite these challenges, there was a slight optimism regarding future business activity, although this was tempered by ongoing economic uncertainties.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/uk/uk-firms-lose-more-momentum-cut-staff-december-wake-budget-pmi-shows-2025-01-06/ ]