UK service sector companies cut jobs at the fastest pace since 2020 in February, driven by weak demand and rising costs. The S&P Global UK Services PMI survey recorded a reading of 51, up slightly from January’s 50.8. While a score above 50 indicates growth, the February result was below the forecasted 51.1.
Businesses are facing mounting pressures from rising costs, with the minimum wage and employer taxes set to increase in April. Tim Moore, economics director at S&P Global Market Intelligence, noted that companies have experienced a loss of growth momentum since last autumn.
The survey also revealed a decline in business optimism, contributing to the fifth consecutive month of job cuts across the sector. Aside from the pandemic, this marks the longest period of falling employment since early 2011.
