UK services sector showed signs of slowing in November, with final PMI Services reading dropping to 50.8 from October’s 52.0, marking the weakest level in 13 months. Composite PMI similarly declined to 50.5 from 51.8, barely holding above the threshold for expansion.
Tim Moore, Economics Director at S&P Global Market Intelligence, remarked that service providers saw activity “close to stalling”. Businesses faced weaker sales pipelines, postponed projects, and heightened caution among clients, all of which curtailed growth.
Additionally, the anticipation of higher employer National Insurance contributions weighed on hiring decisions, with workforce numbers shrinking for the second consecutive month. Many firms cited margin pressures as a reason for not replacing departing staff.
Inflationary pressures intensified, with salary costs driving input price increases at the fastest pace since April. This, coupled with worries about policies outlined in the Autumn Budget, led to a “considerable reduction” in business optimism.
