UK factories slash jobs at fastest rate in nearly five years

Published 03/03/2025, 11:02
UK factories slash jobs at fastest rate in nearly five years

Investing.com -- British factories have been reducing their workforce at the quickest rate in almost five years, according to a survey released on Monday.

This comes as the government’s payroll tax hike begins to raise operational costs for these businesses, and demand both domestically and internationally continues to be weak.

Despite these challenges, manufacturers have expressed their most positive outlook in the past six months, anticipating an economic recovery.

The S&P Global Purchasing Managers’ Index (PMI) for UK manufacturing, a key indicator of economic health, has stayed below the 50.0 mark, which separates growth from contraction, for five consecutive months.

The PMI further dipped to a 14-month low of 46.9 in February. Although this figure is higher than the initial February estimate of 46.4, it still falls short of January’s 48.3.

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