"The latest purchasing managers' index (PMI) showed that economic growth stalled over the month, with the composite reading slipping to 51.2 from 52.2 in October - only marginally above the 50 threshold separating expansion from contraction. Workforce numbers declined at the steepest rate since February, marking the thirteenth consecutive month of falling headcounts."
"Respondents to the survey pointed to higher payroll costs, rising taxes and fast-increasing wages as key reasons for reducing staff levels. Firms also reported an "abrupt end" to the recent improvement in new orders, while overall optimism softened as companies scaled back investment plans."
""Lower workloads led to a renewed slowdown in business activity growth across the UK service economy, with the latest expansion much softer than the post-pandemic trend," he said. "Survey respondents widely commented on business challenges linked to fragile client confidence, heightened risk aversion and elevated policy uncertainty in the run-up to the Budget.""
Economic growth effectively stalled in November as the composite PMI slipped to 51.2 from 52.2 in October, barely above the expansion threshold. Services activity softened, with the services PMI at 51.3, while manufacturing posted its first positive reading in 14 months. Workforce numbers fell at the steepest rate since February, the thirteenth consecutive monthly decline. Firms cited higher payroll costs, rising taxes and rapidly increasing wages as drivers of headcount reductions. New orders lost momentum and business optimism weakened, prompting companies to scale back investment plans. Conflicting Treasury briefings on tax rises kept firms cautious ahead of the Budget.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]