Latest news with #S&P Global
Yahoo
5 days 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
5 days 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
5 days 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.
Bloomberg
5 days 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.
Reuters
5 days ago
- Business
- Reuters
French private sector activity contracts again in July, PMI shows
PARIS, July 24 (Reuters) - France's private sector activity shrank for an 11th straight month in July as political uncertainty weighed on business confidence in the euro zone's second-biggest economy, according to data from S&P Global published on Thursday. The HCOB Flash France Composite PMI Output Index rose to an 11-month high of 49.6 points in July from 49.2 in June, but remained below the 50.0 threshold that separates growth from contraction. A Reuters poll had forecast a rise to 49.3 points. The July services sector flash PMI edged up to 49.7 from 49.6 in June, while the July flash manufacturing sector PMI also rose to 48.4 from 48.1 in June. Demand for French goods and services also weakened further, with new orders falling at the fastest rate since February. Business confidence deteriorated significantly, reaching its lowest level since November, as companies expressed concerns over domestic political uncertainty given opposition to French Prime Minister Francois Bayrou's budget. Trade unions and opposition political parties have voiced discontent over Bayrou's proposal to scrap two public holidays and freeze most public spending as part of a 43.8 billion euro ($51.36 billion) budget squeeze. "While momentum has been trending upward since the beginning of the year, the index remains below the critical 50-point threshold. This continues to signal a deterioration in economic conditions, albeit one that is only marginal," said Jonas Feldhusen, Hamburg Commercial Bank junior economist. "Should an agreement on the austerity package be reached, it would reduce disposable income for many households - posing clear downside risks for domestic demand and especially for the services sector. Conversely, failure to reach a budget deal could further escalate political uncertainty," he added. ($1 = 0.8529 euros)
