Latest news with #private sector
Yahoo
4 hours ago
- Business
- Yahoo
Growth slows across UK private sector as job cuts accelerate
Growth in the UK's private sector slowed down last month as firms also accelerated job cuts in the face of higher costs, according to new figures. The S&P Global flash UK composite purchasing managers' index (PMI) reported a reading of 51 in July, sliding from a nine-month high of 52 reported in June. The flash figures are based on preliminary data. Any score above 50.0 indicates that activity is growing while any score below means it is contracting. The figures therefore pointed towards continued growth but at a slower rate. It was also weaker than expected by economists, who had predicted a reading of 51.8 for the month. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year. 'The sluggish output growth reported in July reflected headwinds of deteriorating order books, subdued business confidence and rising costs, all of which were widely linked to the ongoing impact of the policy changes announced in last autumn's budget and the broader destabilising effect of geopolitical uncertainty.' The data showed that growth was driven by the service sector in July, with firms highlighting an 'uptick' in consumer spending. Nevertheless, service businesses said they still faced headwinds linked to 'fragile domestic economic conditions' and wider uncertainty. Meanwhile, manufacturing production stabilised during the month after eight consecutive months of decline. Goods producers however said they were impacted by 'challenging business conditions', particularly in major export markets due to the continued fallout of the US tariff changes. Surveyed firms reported a drop in overall new work from the private sector, slipping to its weakest level for three months. Lower levels of new work contributed to another drop in employment, with the survey showing the fastest rate of 'job shedding' since February, with job cuts across the manufacturing and service sectors. Companies cited that higher labour costs, following rises in national insurance contributions and the minimum wage, led to a number of workforce restructurings. Mr Williamson said: 'Particularly worrying is the sustained impact of the budget measures on employment. 'Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July.' Sign in to access your portfolio
The Independent
10 hours ago
- Business
- The Independent
Growth slows across UK private sector as job cuts accelerate
Growth in the UK's private sector slowed down last month as firms also accelerated job cuts in the face of higher costs, according to new figures. The S&P Global flash UK composite purchasing managers' index (PMI) reported a reading of 51 in July, sliding from a nine-month high of 52 reported in June. The flash figures are based on preliminary data. Any score above 50.0 indicates that activity is growing while any score below means it is contracting. The figures therefore pointed towards continued growth but at a slower rate. It was also weaker than expected by economists, who had predicted a reading of 51.8 for the month. Chris Williamson, chief business economist at S&P Global Market Intelligence, said: The flash UK PMI survey for July shows the economy struggling to expand as we move into the second half of the year. 'The sluggish output growth reported in July reflected headwinds of deteriorating order books, subdued business confidence and rising costs, all of which were widely linked to the ongoing impact of the policy changes announced in last autumn's budget and the broader destabilising effect of geopolitical uncertainty.' The data showed that growth was driven by the service sector in July, with firms highlighting an 'uptick' in consumer spending. Nevertheless, service businesses said they still faced headwinds linked to 'fragile domestic economic conditions' and wider uncertainty. Meanwhile, manufacturing production stabilised during the month after eight consecutive months of decline. Goods producers however said they were impacted by 'challenging business conditions', particularly in major export markets due to the continued fallout of the US tariff changes. Surveyed firms reported a drop in overall new work from the private sector, slipping to its weakest level for three months. Lower levels of new work contributed to another drop in employment, with the survey showing the fastest rate of 'job shedding' since February, with job cuts across the manufacturing and service sectors. Companies cited that higher labour costs, following rises in national insurance contributions and the minimum wage, led to a number of workforce restructurings. Mr Williamson said: 'Particularly worrying is the sustained impact of the budget measures on employment. 'Higher staffing costs have exacerbated firms' existing concerns over payroll numbers in the current environment of weak demand, resulting in another month of sharply reduced headcounts in July.'
Bloomberg
11 hours ago
- Business
- Bloomberg
UK Firms Cut Jobs and New Orders as Economy Struggles for Growth
Britain's private sector lost momentum in July as the fallout from the Labour government's first budget and a febrile global backdrop prompted firms to cut jobs and new orders, according to a closely watched survey. S&P Global's purchasing managers' index slipped to 51 in July from the nine-month high of 52 the previous month. It was slightly worse than the 51.8 reading expected by economists surveyed by Bloomberg.
Wall Street Journal
11 hours ago
- Business
- Wall Street Journal
Global Economies Show Resilience Despite Tariff Fears, Surveys Show
Large economies in Europe and Asia continued to show resilience in the face of high levels of uncertainty about the future of trade and international relations, although export orders weakened in some. The eurozone's composite purchasing managers' index—a measure of activity across the private sector—showed business growth in July expanding at the fastest rate in nearly a year as new orders stabilized. Separate surveys for the Japanese and Australian economies pointed to growth despite declines in new export orders received by factories. In contrast, Indian factories reported a continued expansion in overseas orders, which supported rapid economic growth.
Bloomberg
12 hours ago
- Business
- Bloomberg
Euro-Zone Private Sector Grows at Fastest Pace in Almost a Year
The euro area's private sector grew at the quickest pace since last August as a three-year manufacturing downturn nears an end and the services sector gathers momentum, even as a trade showdown with the US looms. The Composite Purchasing Managers' Index compiled by S&P Global rose to 51 in July from 50.6 in June, further above the 50 threshold separating expansion from contraction. Analysts had predicted a reading of 50.7.
