Here’s a theory: Far more people shopping online this year meant retailers hired fewer extra staff in December.
The Market flash services PMI was at a 10 month low and well below expectations.
The job creation index was at an 8-month low and the comments in the report were worrying.
- “Some firms noted that softer new business gains had led to more cautious hiring policies at their units.”
- “In line with softer output momentum, the latest survey highlighted a further moderation in new business growth from June’s post-crisis peak.”
- “The extent of the slowdown suggests that economic growth in the fourth quarter could come in below 2% which, with the exception of the downturn caused by adverse weather in the first quarter, would be the worst performance for two years.”
- “Job creation has also slowed sharply alongside the cooling of demand, and payroll numbers across both sectors showed the smallest rise for eight months.”
Market services PMI — shart drop since June
