–Nov Services PMI 52.1 Vs 51.3 In Oct Due New Business
–Markit/CIPS: Survey Points To Stagnation Of Growth In Q4
–Pace Of Job Losses Running At A 15-Month High
–Says Plunge Into Recession Will Hinge On Solution To EZ Crisis
LONDON (MNI) – The Markit/CIPS purchasing managers’ services sector
survey saw only anaemic growth through last month, with the headline
activity index reading 52.1, although well above MNI’s median forecast
of 50.7.
Markit/CIPS said that the evidence pointed to stagnating growth
though the final quarter of this year and noted that jobs are being lost
at the fastest pace seen in 15 months.
While the headline reading was up on October’s 51.3 due to “modest
growth of incoming business” – this is being “undermined by difficult
economic climate,” Markit said.
The survey follows the marked contraction seen in manufacturing in
November. The surveys are in line with official forecasts from the Bank
of England, the Office for Budget Responsibility as well as the OECD
Chris Williamson, Chief Economist at survey compilers Markit, said
that the euro zone crisis continues to weigh on business sentiment. The
acceleration in the pace of job losses also heightened concerns
that the private sector would not be able to compensate for falling
employment in the public sector as the government’s austerity cuts
begin to bite.
“Companies remained concerned about the outlook, with headcounts
falling at the steepest rate for over a year as a result. With the
private sector cutting staff at the same time as government spending
cuts reduce the public sector payroll numbers, unemployment looks set to
rise above the current rate of 8.3%.
–London newsroom 0044 207 862 7491; email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,MABDS$]