British private sector output dropped in September, prompting firms to cut staff, S&P Global says
Companies in the UK’s private sector have been downsizing their workforce at the fastest rate since the global financial crisis, apart from the Covid-19 pandemic lockdowns, as output fell in September, according to data published by S&P Global on Friday.
The latest flash S&P Global Composite Purchasing Managers’ Index (PMI) figure for the UK slipped to 46.8, down from 48.6 in August, and reached a 32-month low. The reading was well below the 50-mark, which separates growth from contraction, and lower than economists expected, S&P said.
“The disappointing PMI survey results for September mean a recession is looking increasingly likely in the UK,” Chris Williamson, chief business economist at S&P Global Market Intelligence, warned.
“The steep fall in output signaled by the flash PMI data is consistent with GDP contracting at a quarterly rate of over 0.4%, with a broad-based downturn gathering momentum to hint at few hopes of any imminent improvement.”
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The British jobs market is facing an “abrupt turnaround,” prompting companies to shed staff at the fastest pace since the aftermath of the 2008 global financial crisis, excluding the pandemic, S&P said.