UK Service Firms Cutting Jobs in Fastest Rate For Nearly 4 Years: Finds Survey

According to the S&P Global UK services PMI survey, service sector firms have been cutting jobs at the fastest rate for nearly 4 years now, amidst concerns over subdued consumer sentiment even after slight improvements in activity in December, 2024.

The survey has scored 51.1 in the month of December, 2024 which is a little up from 50.8 in November 2024. For over a year, the previous score serves as the lowest reading.

In addition, any reading that is above 50 is considered as growth. In contrast, any number below 50 means it is shrinking. The score is slightly below the 51.4 reading which is predicated by a consensus of economists.

S&P Global Market Intelligence Economics director Tim Moore stated, “Survey respondents suggested that falling business and consumer confidence, largely due to worries about domestic economic prospects in 2025, had led to a considerable loss of growth momentum. The service sector ended last year with only a marginal upturn in business activity and a near-stalling of incoming new work.”

He added, “While most parts of the UK service economy noted weak demand and cutbacks to client budgets, there remained pockets of strong growth in areas such as technology services.”