UK companies are cut off “fastest pace since 2009”

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Companies in the United Kingdom reduce jobs as soon as possible since the financial crisis, with the exception of the epidemic, as high costs raised concerns in the British economy at the beginning of the year, according to a close witness.

S& P Global Flash Purchahing Managers on Friday indicated that the rate of job losses in January and December was the highest since the global financial crisis in 2009, outside the beginning of Covid-19 in 2020.

The survey also indicated that the costs of the costs on business rose at the fastest pace in more than a year and a half. Many companies have passed at higher costs for consumers, which led to the fastest increase in the average price imposed since July 2023.

The poll results “add to the depression about the British economy, as companies have reduced employment amid low sales and concerns about business prospects.”

And warn that Inflationary pressures It was “referred to, referring to the recession environment, which is an increasing dilemma of the Policy of England,” he said.

The decrease in employment is due to the use of freezing and the non -replacement of voluntary autumn in the wake of the high salary costs, according to the survey.

Many companies have proposed the decision of the government to raise the national insurance for employers, which enters into force in April, and led to a reduction in employment plans, while others pointed to the impact of the recession after the budget on the confidence of the work.

The S& P Global Global Flash UK PMI, which tracks the total activity in the private sector, rose to the highest level in three months at 50.9 points in January from 50.4 in December.

Reuters economists expected the index to decrease to 50 points. Any reading above 50 indicates that most companies report growth in the activity.

Elias Helmer, economist at Capital Economics, said that the PMIS numbers will “will not reduce the banks of the Bank of England about weak activity, but increasing price pressure indicates that they will gradually reduce prices only after that,” said Elias Helmer, economist at Capital Economics,.

It is in line with the markets, and the Bank of England is expected to reduce prices by a quarter to 4.5 percent in February.

The British economy recorded any growth in the three months to September, which represents a sharp slowdown of 0.4 percent in the previous quarter. The Internet Bank does not expect any growth in the last quarter of 2024.