UK PMI Services for December was finalized at 51.1, slightly up from November’s 50.8, marking the fourteenth consecutive month of expansion. However, growth was marginal, with the index’s quarterly average at its lowest in a year. PMI Composite slipped to 50.4, down from 50.5, its weakest reading since October 2023.
Tim Moore, Economics Director at S&P Global Market Intelligence, noted a “near-stalling” of new business inflows due to falling business and consumer confidence. Respondents cited concerns over “domestic economic prospects” for 2025 and lingering post-Budget uncertainty as major factors curbing growth momentum.
Cost pressures intensified, with input price inflation hitting an eight-month high. Service providers responded by raising prices at a rate well above pre-pandemic levels, further straining demand.
Nearly one in four firms reported payroll reductions, marking the steepest non-pandemic-related job shedding in over 15 years as subdued demand and rising employment costs forced businesses to delay hiring or reduce staff.
