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British factories cut staff at the fastest pace in nearly five years last month as the government’s payroll tax increase began to push up their costs and demand at home and abroad was weak, a survey showed on Monday. But manufacturers also turned the most positive in six months as they hoped for a pick-up in the economy. in February.
The survey is barely above the 50 dividing line between growth and contraction and adds to a run of lacklustre economic indicators since finance minister Rachel Reeves announced the biggest tax rises since 1993 in October. Investors are pricing in just two quarter-point rate cuts by the BoE in 2025 as inflation pressures remain sticky.
Indeeds data shows a steady fall in vacancies through 2024 but businesses concerns about hiring have become sharper since finance minister Rachel Reeves announced a 25 billion pound ($32 billion) rise in employer payroll taxes in her Oct. Employers will likely continue with caution when it comes to hiring in 2025, Indeed said.
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