UK companies slashed jobs faster than at any point in the past nine months after Budget uncertainty and shaky customer confidence froze up business decisions, according to S&P Global data. The PMI reading dropped to 51.2 from 52.2, and workforce numbers fell for the thirteenth straight month. Tim Moore from S&P Global said companies held back on hiring and spending while everyone waited to see what tax hikes and cuts were coming.
Businesses blamed higher payroll expenses, increased taxes, and rising wages for the headcount reductions. The services sector slumped to 51.3, but manufacturing posted its first positive number in over a year. Economists think GDP growth hit around 0.1 percent for the quarter, and they expect the Bank of England to drop interest rates early next year since inflation seems to be cooling off.
Businesses blamed higher payroll expenses, increased taxes, and rising wages for the headcount reductions. The services sector slumped to 51.3, but manufacturing posted its first positive number in over a year. Economists think GDP growth hit around 0.1 percent for the quarter, and they expect the Bank of England to drop interest rates early next year since inflation seems to be cooling off.
