Businesses ‘enthused’ by increase in new work after Budget, but job cuts continue

Growth in the UK private sector accelerated this month and businesses were “boosted” by an influx of new work. BudgetDespite continued job cuts, a new survey shows.

The S&P Global Flash UK Composite Purchasing Managers’ Index (PMI) recorded a reading of 52.1 in December, up from 51.2 in November.

Flash statistics are based on preliminary data. Any score above 50.0 indicates that activity is growing while any score below means it is shrinking.

December data suggested the strongest jump in new job levels for companies in 14 months, mainly reflecting improved demand from the services sector.

Survey respondents pointed to an improvement in confidence among their customers – which previous data indicated had declined ahead of the government’s autumn budget statement in November.

New work from abroad also picked up at the end of the year, ending a 13-month period of decline.

chris williamsonThe chief business economist at S&P Global Market Intelligence said the latest survey “brings welcome news on faster economic growth at the end of the year, with businesses partly buoyed by the lifting of post-Budget uncertainty”.

“It is a great relief that business confidence has not declined despite a repeat of last year’s post-Budget disappointment,” he said.

“Instead, companies have now ended the year with a slightly more optimistic stance amid signs of demand recovery as some of the uncertainties created by the Budget have subsided.”

But Mr Williamson said output growth among private companies was “still very dependent on technology and financial services activity, with many other parts of the economy struggling to grow or declining”.

,lost the job They are also worryingly wide again, and it remains to be seen whether the surge in orders during December will persuade more companies to start hiring again,” he said.

Despite overall growth in activity, headcount declined for the 15th consecutive month in December PMI Gave the signal.

This was particularly the case in the services sector, where low employment was often due to intense cost pressures.

Mr Williamson said the data showed that Edge England is likely to cut interest rates on Thursday to help stimulate the economy amid “slow growth and worrying jobs data”.