British firms plan to raise prices as growth stagnates [Video]

Growth by British firms slowed to a snail’s pace last month and employers laid off staff at the fastest rate since the pandemic lockdown, according to the latest industry survey, writes David Connett.

The S&P PMI survey confirmed that the UK’s economy stagnated at the end of 2024 with the weakest private sector growth in 14 months.

Tim Moore, the economics director at S&P Global Market Intelligence, said: “Survey respondents suggested that falling business and consumer confidence, largely due to worries about domestic economic prospects in 2025, had led to a considerable loss of growth momentum.

“While most parts of the UK service economy noted weak demand and cutbacks to client budgets, there remained pockets of strong growth in areas such as technology services.”

Companies reported subdued sales pipelines, with total new orders close to stagnation for the period.

Many service-sector firms also said they had cut jobs at the fastest pace …