According to Rashatudi news agency, according to S&P Global data published on Friday, private companies in the UK have reduced their workforce at the fastest rate since the global financial crisis in 2008, excluding the corona pandemic.
According to SNDP Global Institute, the latest figures for the PMI forecast in the UK reached 46.8 points, which shows a decrease compared to the figure recorded in August, i.e. 48.6 points, and reached the lowest level in the last 32 months. .
This figure was much lower than the 50 mark that separates the growth of economic activities from contraction and was less than expected by economists.
Chris Williamson, the institute’s chief economist, who is an expert in the business sector, warned: “The disappointing results of the Purchasing Managers’ Index survey for September mean that there is a high probability of an economic recession in the UK.”
He said: “The sharp decline in production shown by PMI data is consistent with GDP contraction at a quarterly rate of around 0.4 percent, and a broad downward movement that is accelerating and with little hope of an immediate recovery.” it shows.
Britain’s labor market is facing “sudden upheaval”, prompting companies to lay off staff at the fastest pace since the global financial crisis in 2008, barring the pandemic, the institute said.
A major concern in the inflation outlook has been wage growth, but with the survey now showing the sharpest decline in employment since 2009, the bargaining power of wages is eroding rapidly, Williamson added.
Overall, private sector business activity in the UK fell at the fastest rate since March 2009 as the cost of living crisis and rising borrowing costs dampened demand, SNDP concludes.