The survey data point to a further rise in inflation beyond the latest official figure for January of 3% as a ”growing number of firms report the need to raise prices in order to help offset the impending rise in staff costs associated with the National insurance hike and uplift to the minimum wage announced in the autumn Budget.
Chris Williamson, chief business economist at S&P Global Market Intelligence said: “Early PMI survey data for February indicate that business activity remained largely stalled for a fourth successive month, with job losses mounting amid falling sales and rising costs.
The private sector is shedding staff at the fastest rate since the pandemic ahead of the higher employer National Insurance Contributions coming into force in April.
Williamson continued: “Employment fell sharply again in February, dropping at a rate not seen since the global financial crisis if pandemic months are excluded.
They show that a combination of excess capacity, weak customer demand and rising payroll costs “led to a marked decline in employment numbers across the private sector in February.”.
