Rachel Reeves has been dealt a fresh blow as the country is still reeling following her Budget, delivered last Wednesday. Growth in the UK services sector slowed down last month amid softer consumer demand, according to new figures.
The S&P Global UK services PMI survey scored a reading of 51.3 in November, which marked a slump from the 52.3 figure recorded in October. Any reading above 50.0 means the sector is growing while any score below means it is contracting.
The closely-watched survey was stronger than expected, with analysts predicting a 50.5 reading for the month.
Tim Moore, economics director at S&P Global Market Intelligence, said: “November data revealed an abrupt end to the steady improvement in order books seen since the summer.
“Unfavourable demand conditions were signalled in both domestic and export markets.
“Lower workloads led to a renewed slowdown in business activity growth across the UK service economy, with the latest expansion much softer than the post-pandemic trend.
“Moreover, staffing numbers were trimmed to the greatest extent since February.”
The latest data was released one week after Ms Reeves delivered her £26bn tax-raising Budget.
Budget day was thrown into chaos as it saw key details set to be delivered by the Chancellor being published by mistake by the Office for Budget Responsibility (OBR) before her address had begun.
A probe was launched into the incident, with the OBR chief, Richard Hughes, resigning over it.
