Reeves Blamed as Private Sector Output Declines for First Time in 18 Months
This morning’s closely-watched S&P Global Flash UK PMI paints a bleak picture for private sector output. Which has declined for the first time in one and a half years…
The survey notes “the degree of optimism towards the year ahead outlook slumped to its lowest since October 2022.” Service providers decreased business activity, ending 17 months of expansion. Manufacturer output fell for the sixth month in a row. Staffing numbers have fallen for seven months now…
S&P Chief Business Economist Chris Williamson sounds serious alarms about the ONS’ recent positive GDP data: “April’s fall in output was the largest recorded for nearly two and a half years, consistent with GDP declining at a quarterly rate of 0.3%… Job cutting remains aggressive as business optimism about the year ahead sank to a two-and-a-half-year low, and one of the lowest levels yet recorded by the survey, even surpassing the low seen in the immediate aftermath of the Brexit vote in 2016.” Gulp…
Trump’s tariffs do not get the whole blame, as the IMF also pointed out yesterday: “Higher staffing costs have also piled pressure on companies – linked to the National Insurance and minimum wage changes that came into effect at the start of the month.” Securonomics at work there…
