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British factories cut staff at the fastest pace in nearly five years last month as the government’s payroll tax increase began to push up their costs and demand at home and abroad was weak, a survey showed on Monday. Firms told S&P Global that suppliers were putting up their prices ahead of the change. in February.
In addition to the better-than expected increase in nonfarm payrolls reported by the Labor Department on Friday, wages rose at a solid pace last month. Nonfarm payrolls increased by 254,000 jobs last month, the most since March, the Labor Department’s Bureau of Labor Statistics said. Southeast last week. presidential election.
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This one-two punch of shrinking output and swelling costs leaves executives hungry for a lever that widens margins without hacking payroll. Manufacturers face a different vice: higher component costs and a consumer unable to absorb price passes. Small and midsize firms, which account for roughly forty-four percent of U.S.
The claims data covered the period during which the government surveyed businesses for the nonfarm payrolls component of April’s employment report. ” It said suppliers have on average raised their prices by 6.3%, meaning that builders estimated a typical cost effect from recent tariff actions at $10,900 per home.
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