Sun. Oct 25th, 2020

UK services stagnates as Brexit uncertainty squeezes economy – business live

Rolling coverage of the latest economic and financial news

Earlier:

9.57am GMT

Britain’s private sector is suffering its longest contraction since the financial crisis.

That’s according to October’s surveys of purchasing managers, which suggest the UK economy could shrink by 0.1% this quarter.

Contractions have now been recorded in four of the past five months, marking the worst spell since 2009 during the global financial crisis.

“The October reading is historically consistent with GDP declining at a quarterly rate of 0.1%, similar to the pace of contraction in GDP signalled by the surveys in the third quarter.

UK service sector PMI of 50.0 in October indicating no change in output. All sector PMI is still slightly in contraction territory (49.5) because of the sub-50 readings for manufacturing & construction. Q3 PMIs had a bit of tension with official stats (sub-50 vs 0.3%q/q in Aug). pic.twitter.com/psrDsuVMWV

9.45am GMT

Some service sector companies have stopped hiring new staff, while others are actively laying people off.

Today’s services PMI report explains:

Fewer incoming new contracts and sharply falling backlogs led to another reduction in workforce numbers in October, the fifth in 2019 so far.

While firms mostly linked lower headcounts to the non-replacement of voluntary leavers, some compulsory redundancies were also reported. The overall rate of job shedding eased since September, however

Continue reading…Rolling coverage of the latest economic and financial newsLatest: UK service sector flatlined in OctoberUK car registrations down 6.7%Earlier:US could roll back recent tariffs on ChinaMove could get Phase One deal over lineMacron: Trade war must end 9.57am GMTBritain’s private sector is suffering its longest contraction since the financial crisis.That’s according to October’s surveys of purchasing managers, which suggest the UK economy could shrink by 0.1% this quarter. Contractions have now been recorded in four of the past five months, marking the worst spell since 2009 during the global financial crisis.“The October reading is historically consistent with GDP declining at a quarterly rate of 0.1%, similar to the pace of contraction in GDP signalled by the surveys in the third quarter. UK service sector PMI of 50.0 in October indicating no change in output. All sector PMI is still slightly in contraction territory (49.5) because of the sub-50 readings for manufacturing & construction. Q3 PMIs had a bit of tension with official stats (sub-50 vs 0.3%q/q in Aug). pic.twitter.com/psrDsuVMWV 9.45am GMTSome service sector companies have stopped hiring new staff, while others are actively laying people off.Today’s services PMI report explains:Fewer incoming new contracts and sharply falling backlogs led to another reduction in workforce numbers in October, the fifth in 2019 so far.While firms mostly linked lower headcounts to the non-replacement of voluntary leavers, some compulsory redundancies were also reported. The overall rate of job shedding eased since September, however Continue reading…

Leave a Reply

Your email address will not be published. Required fields are marked *