UK firms see easing downturn, but manufacturing job cuts intensify

Published 22/05/2025, 09:42
UK firms see easing downturn, but manufacturing job cuts intensify

Investing.com -- A survey published on Thursday revealed that the downturn for British firms eased in May, despite a worsening scenario for manufacturers.

Manufacturers were found to be cutting jobs at one of the fastest rates since the global financial crisis nearly two decades ago.

The S&P Global UK Composite Purchasing Managers’ Index (PMI), a measure of the private sector economy, increased to 49.4 in May, up from 48.5 in April.

This rise was roughly in line with economists’ expectations, and it moves closer to the 50 mark that signifies growth.

The services sector PMI also saw an increase in May, reaching 50.2 from 49.0 in April.

However, new orders in this sector contracted at the fastest pace since late 2022, which could be a negative sign for the coming months.

On the other hand, the manufacturing PMI decreased to 45.1 from 45.4, and the jobs index for this sector dropped to its lowest point since the beginning of the COVID-19 pandemic.

This suggests that job cuts in manufacturing are intensifying, even as the overall downturn for British firms seems to be easing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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