- Final Services PMI 50.8 vs. 50.0 expected and 52.0 prior.
- Final Composite PMI 50.5 vs. 49.9 expected and 51.8 prior.
Key findings:
- Marginal overall rise in business activity in November
- Staffing numbers decrease for second month running
- Weakest output growth projections for nearly two years
Comment:
Tim Moore, Economics Director at S&P Global Market Intelligence, said:
"UK service providers indicated that business activity was close to stalling in November, with growth easing to its slowest for over a year. Weaker sales pipelines, cutbacks to new projects and more caution among clients were all cited as having an adverse impact on service sector output.
Softer new business expansion and forthcoming rises in employers' National Insurance contributions weighed heavily on staff recruitment, according to survey respondents. Total workforce numbers dipped for the second month running, with many firms noting that pressure on margins from higher payroll costs had led to the non-replacement of departing staff.
Higher salary payments meanwhile contributed to a sharp and accelerated increase in input prices, with the rate of cost inflation the fastest since April. There was a considerable reduction in business optimism across the service economy, with output growth expectations falling to the weakest since December 2022.
Worries about the impact of policies announced in the Autumn Budget, in particular those pushing up employment costs, were widely reported as leading to a gloomier assessment of business investment prospects and the broader UK economic outlook."
