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UK Service Sector Faces Fastest Job Cuts in Four Years

1/7/2025

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Summary

Story summary

The UK service sector experienced its fastest job cuts in four years, with a December PMI of 51.1, signaling marginal growth.
Weak consumer confidence and rising payroll costs led to reduced demand and hiring freezes.
Approximately 25% of firms reported job reductions, while input cost inflation hit an eight-month high.
Business optimism for 2025 is low, as economic concerns hinder new work inflows.

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Story summary

The UK service sector experienced its fastest job cuts in four years, with a December PMI of 51.1, signaling marginal growth.
Weak consumer confidence and rising payroll costs led to reduced demand and hiring freezes.
Approximately 25% of firms reported job reductions, while input cost inflation hit an eight-month high.
Business optimism for 2025 is low, as economic concerns hinder new work inflows.