My Tiny Feed

independent.co.uk

UK Services Sector Growth Slows

UK services sector growth slows to near year low due to policy uncertainty, impacting business confidence and spending.

Read original article in English

English

United Kingdom

EconomyUkInflationBusinessGrowthUncertainty

S&P GlobalS&P Global Market IntelligenceBank Of England

Tim Moore

What factors contributed to the slowdown in the UK's services sector growth in October 2024?: Increased business uncertainty and concerns about the UK's economic outlook negatively impacted demand, leading to the weakest expansion in service sector activity since November 2023. The wait for clarity on government policy further dampened business confidence and spending.
How did input cost and price inflation perform in the UK's services sector during October 2024?: Input cost inflation rose to a three-month high in October, primarily driven by higher wages. However, price inflation remained near its 43-month low, a factor that policymakers at the Bank of England are closely monitoring.
Besides domestic factors, what other global concerns influenced business decisions in October 2024?: Geopolitical concerns and upcoming US elections contributed to a cautious approach to business investment decisions. Persistent cost-of-living pressures further restrained household spending, adding to the overall economic slowdown.
What impact did the economic slowdown have on employment and business investment in the UK's services sector?: The slowdown in new business growth and less optimistic business expectations for the coming year caused a decline in staffing numbers for the first time since December 2023. Several firms also reported budget constraints due to elevated salary pressures.
What was the October 2024 score for the S&P Global UK services PMI survey, and what does this indicate about the sector's growth?: The UK's services sector growth slowed to its lowest rate in almost a year during October 2024, reaching a score of 52.0 on the S&P Global UK services PMI survey. This slowdown is attributed to policy uncertainty ahead of the Budget and broader economic concerns.

Jan 22, 10:07

Qantas Raises Long-Haul Flight Fares by Two Percent

Qantas announced a two percent fare increase on Economy and Premium Economy long-haul flights from Australia and New Zealand to the UK, Europe, the Middle East, and North Africa, effective March 21, 2024, following a 28 percent drop in its 2024 post-tax profit.

Jan 22, 16:07

Fanatics to Open Flagship Trading Card Store in London

Fanatics Collectibles will open an 8,647-square-foot trading card store in London's West End in Spring 2025, aiming to jumpstart the trading card hobby in the U.K. and Europe by leveraging London's global reach and creating a community hub.

Jan 22, 19:09

£2.3 Billion Hit to Businesses After Pension Threshold Freeze

Labour's freeze on the auto-enrollment threshold for workplace pensions at £10,000 will cost businesses an additional £2.3 billion in 2025-26 due to rising wages bringing more low-earners into the system, increasing employer contributions to £51.9 billion, despite concerns over potential job losses.

Jan 22, 04:11

HMRC Cuts Off 43,690 Customers, Faces Criticism Over Poor Phone Service and Rising Uncollectable Debt

HMRC's phone system cut off 43,690 customers after 70-minute waits in 2023-24 due to high call volume, prompting criticism from MPs over poor service and a £5 billion increase in uncollectable debt; HMRC denies claims of deliberately poor service.