In November 2024, the S&P Global UK Services Purchasing Managers’ Index (PMI) was revised upward to 50.8 from an initial estimate of 50. This slight increase indicates modest growth in the UK’s service sector.
However, the expansion has been slow since the current growth phase began in November 2023, reflecting economic uncertainties and concerns over tax hikes.
- PMI revised to 50.8 in November 2024
- Slowest service sector growth since November 2023
- Economic Uncertainty and tax concerns Impacting businesses
Business Growth Weakens Due to Economic Challenges
Service providers face significant hurdles from economic uncertainty and worries about tax increases outlined in the Autumn Budget.
New business volumes have risen for the thirteenth month, driven by steady consumer spending. Despite this, the growth rate is the weakest since the pre-election slowdown in June. Additionally, new orders from abroad have moderated, even with increased demand from U.S. clients.
- Also read: Norway November 2024 Housing Market Overview
Employment Declines as Inflation Revs
Employment in the service sector has fallen for the second consecutive month, though the decline is less severe than in October.
On the pricing front, cost inflation has accelerated to its highest rate since April, leading businesses to raise their charges faster since July. Confidence in future business activity has dropped to its lowest level since December 2022, reflecting concerns over the economic outlook.