UK service sector sheds jobs for fifth month running after autumn budget

The UK services companies have reduced employment for the fifth consecutive month, according to the FIFA World Procurement Manager Index for February.

The survey data highlights what economists describe as “the loss of growth momentum” since the autumn budget, as some companies indicate an increase in national insurance for employers for a main factor.

This long star is one of the job losses most expanded since early 2011, with the exception of the Covid-19 stagnation. Tim Moore, director of economics at the S& P Global Market Intelligence, says that low optimism and continuous cost pressures “led to net recruitment through the service economy in February.”

Despite these numbers, some analysts urge caution on the depression of the applicable purchasing managers. Rob Wood, the UK's chief economist in the macroeconomic economy, notes that the index “only asks the number of companies that reduce production or employment, and not by the amount.” In fact, official data from the National Statistics Office indicate that unemployment is still near the lowest historic level of 4.4 percent.

PMi reading the final services reached up to 51 in February 50.8 in January, and remains higher than the 50 -point threshold that separates the expansion of shrinkage. However, it was just less than the initial “flash” reading. The compound participation directors index, which measures the private sector activity in the entire UK, slided marginally to 50.5 out of 50.6.

Economists note that the consultant is now focusing on possible public spending discounts in the period before the spring statement on March 26 to support its financial goals. The budget responsibility office is expected to warn that its margin is 9.9 billion pounds of error may be eroded since October, due to the high revenues of government bonds and the most sophisticated economic growth expectations.

Thomas Bug, an economist in RSM UK consulting, notes that the performance of the Luft Procurement Managers Index means that the economy “continues the flat line” in the first quarter, yet the survey is suspected of reducing the strength of basic economic activity. Meanwhile, analysts note that President Trump's tariff may be particularly weighing British manufacturing, which is a more vulnerable sector of possible import movie and world trade doubts.