The article discusses the accelerating pace of job cuts in the UK manufacturing sector as taxes and inflation rise, leading to a significant decline in the S&P Global UK manufacturing PMI. With a reading of 46.9 in February, the PMI indicates contraction in the sector for five consecutive months. The increases in employer national insurance contributions, aimed at funding public services, have placed additional pressures on factories, prompting them to implement redundancies and reduce working hours as a response to rising costs.
The S&P Global UK manufacturing PMI survey, watched closely by economists, recorded a reading of 46.9 in February, from 48.3 in January. Any reading above 50 indicates activity is growing while any score below means it is contracting.
Factories have been hit harder than some other parts of the economy by increases to employer taxes announced in the October Budget, with bosses citing them as a driver of rising costs.
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