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U.K. Manufacturing Index Sends Mixed Signals As Jobs Hit Lowest In 5 Years While Optimism Rose

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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.

Payroll 189
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U.K. Business Growth Stalls, Job Cuts Hit 4-Year High

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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.

2025 264
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U.K. Sees Sharpest Decline In Job Vacancies Among Similar Countries

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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.

Payroll 147