Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Services sector slashes jobs for fifth month running as growth momentum stalls

by March 5, 2025
March 5, 2025
Services sector slashes jobs for fifth month running as growth momentum stalls

UK service providers have cut employment for a fifth consecutive month, according to the latest S&P Global purchasing managers’ index (PMI), marking the longest run of job shedding since early 2011 outside of the pandemic period.

The survey points to concerns over a “loss of growth momentum” since the autumn budget, with many firms attributing belt-tightening to the Chancellor’s announcement of a £25 billion increase in employers’ National Insurance contributions.

Tim Moore, Economics Director at S&P Global Market Intelligence, noted that the sector has witnessed a “clear loss of growth momentum” in recent months. While official estimates from the Office for National Statistics still put the UK unemployment rate at a historically low 4.4 per cent, the PMI survey data suggest businesses remain cautious about hiring, especially amid mounting cost pressures.

Economists caution that the PMI figures may overstate the pace of slowdown. Rob Wood, Chief UK Economist at consultancy Pantheon Macroeconomics, argues that the indicator “exaggerates economic weakness” because it gauges only the number of firms reducing output or cutting staff, not the extent of the reductions.

Meanwhile, attention is turning to the spring statement on 26 March, where the Chancellor is expected to contemplate further cuts in public spending to stay within her fiscal rules. The Office for Budget Responsibility is tipped to warn that the Chancellor’s £9.9 billion fiscal buffer, outlined last October, has all but evaporated under the weight of higher government bond yields and tempered economic growth.

February’s final services PMI reading edged up to 51 from 50.8 in January, surpassing the critical 50-point threshold that separates expansion from contraction. However, that figure was a slight downgrade from the earlier flash estimate. Across the broader UK private sector, the composite PMI slipped marginally from 50.6 to 50.5, pointing to a sluggish start to the first quarter.

Thomas Pugh, Economist at RSM UK, remarked that these subdued figures hint at “more of a flatline in economic activity,” though he also shares the view that the PMI readings may be underestimating actual growth. Some analysts suggest that lingering impacts from President Trump’s tariffs continue to weigh on UK manufacturing in particular, given that sector’s vulnerability to shifting trade barriers.

Read more:
Services sector slashes jobs for fifth month running as growth momentum stalls

0
FacebookTwitterGoogle +Pinterest
previous post
Grandparents dip into life savings to plug private school fee gap
next post
Should you drop your diversity, equity and inclusion initiatives?

You may also like

Labour finalising £500m rescue for Tata Steel’s Port...

September 10, 2024

UK firms less likely to borrow than at...

January 3, 2023

British Businesses Show Support for Labour’s Innovation Agenda,...

March 14, 2024

CBI President admits he is unsure if organisation...

April 24, 2023

Scrap 5p fuel duty cut as drivers miss...

August 29, 2024

Tesla to vote ‘immediately’ on move to Texas...

February 1, 2024

Jeremy Hunt Unveils £360m Manufacturing R&D Package to...

March 4, 2024

Games: A Fun Path to Personal Growth

January 22, 2024

Government ‘will not hesitate’ to ensure retailers give...

December 23, 2022

House of Lords criticise Government response to digital...

October 21, 2023

Labour finalising £500m rescue for Tata Steel’s Port...

September 10, 2024

UK firms less likely to borrow than at...

January 3, 2023

British Businesses Show Support for Labour’s Innovation Agenda,...

March 14, 2024

CBI President admits he is unsure if organisation...

April 24, 2023

Scrap 5p fuel duty cut as drivers miss...

August 29, 2024

Tesla to vote ‘immediately’ on move to Texas...

February 1, 2024

Jeremy Hunt Unveils £360m Manufacturing R&D Package to...

March 4, 2024

Games: A Fun Path to Personal Growth

January 22, 2024

Government ‘will not hesitate’ to ensure retailers give...

December 23, 2022

House of Lords criticise Government response to digital...

October 21, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Mark Green announces retirement from Congress before end of term

      June 9, 2025
    • Crypto Market Structure in Focus: The CLARITY Act

      June 9, 2025
    • Trump rejects Iran’s counter-proposal in nuclear negotiations: ‘it’s just not acceptable’

      June 9, 2025
    • Housing Subsidies Boost Costs

      June 9, 2025
    • Navigating VAT Compliance: Why London SMEs Need Expert VAT Return Accountants in London

      June 9, 2025
    • UN’s nuclear watchdog warns its unable to confirm Iran’s program is ‘entirely peaceful’

      June 9, 2025

    Categories

    • Business (8,164)
    • Investing (2,021)
    • Politics (15,577)
    • Stocks (3,138)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved