UK Service Sector Reaches 12-Month Negative Confidence Milestone – Guido Fawkes

UK Service Sector Reaches 12-Month Negative Confidence Milestone

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The UK services sector has now clocked up a full year of pessimism, according to the Confederation of Business Industry’s latest survey of 400 businesses. For four straight quarters optimism about the general business situation has continued to decline. Just more than a year into Labour…

Profitability crashed last quarter (-42%) at the fastest rate since August 2020. Headcount in business and professional services fell again (-16%, down from -28% in July). Firms are braced for hefty cutbacks in land and building investment. The finger of blame is pointing squarely at Reeves’ tax raid. CBI Deputy Chief Economist Alpesh Paleja said:

“Our latest survey paints a grim picture of the services sector. Rising employment costs continue to drive cost pressures higher, while subdued demand conditions are holding pricing power in check. The impact is being felt in lower hiring, investment and profits, with companies increasingly shifting focus to short-term fire-fighting.”

The CBI is also urging Rayner to rethink her (un)employment rights bill, warning it will clobber businesses even harder. And this is before the next budget does its worst…