Published by Global Banking & Finance Review®
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
UK services growth slowed with increased job cuts as firms awaited the budget. PMI showed the first drop in new orders in months.
By Suban Abdulla
LONDON, Dec 3 (Reuters) - Growth among Britain's services firms declined last month and employment contracted the most since February in the run-up to the government's budget, according to a survey on Wednesday that also showed the first drop in new orders in four months.
The S&P Global UK Services Purchasing Managers' Index came in at 51.3 in November, down from October's 52.3, but less of a slowdown than an earlier provisional reading of 50.5.
Some firms said uncertainty about finance minister Rachel Reeves' November 26 budget had prompted them to delay investment in new projects. Survey respondents also noted headwinds to growth from subdued consumer and business confidence.
New orders fell for the first time since July, partly reflecting weak overseas and domestic demand, while exports declined at the fastest pace since June.
"November data revealed an abrupt end to the steady improvement in order books seen since the summer," Tim Moore, economics director at S&P Global Market Intelligence, said.
"Survey respondents widely commented on business challenges linked to fragile client confidence, heightened risk aversion and elevated policy uncertainty in the run-up to the Budget."
Hiring continued to decline, falling at the fastest rate in nine months. Prices charged by firms in November were their weakest in more than four years.
Wednesday's figures are unlikely to bring much comfort to Reeves, who is trying to generate faster economic growth. She announced 26 billion pounds ($34 billion) in tax rises last week but spared businesses to a greater extent than in her first annual budget in October 2024.
The composite PMI, which wraps in the manufacturing PMI released on Monday, eased to 51.2 from 52.2 in October, also a smaller drop than the provisional fall to 50.5 previously reported.
($1 = 0.7576 pounds)
(Reporting by Suban Abdulla; Editing by Joe Bavier)
New orders refer to the requests for goods or services that a company receives from customers. They are a key indicator of future sales and business activity.
Consumer confidence measures how optimistic or pessimistic consumers are regarding their expected financial situation and the overall economy, influencing their spending and saving behaviors.
Economic growth refers to an increase in the production of goods and services in an economy over a period, typically measured by the rise in Gross Domestic Product (GDP).
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