There is an autumnal chill in the UK economy as businesses and consumers nervously anticipate Rachel Reeves’s November budget.
Salaries almost stagnated last month, data shows, as companies reported weaker demand for workers and reduced hiring budgets.
According to the latest KPMG and REC UK report on jobs, starting pay for permanent workers rose “negligibly” in September, with wages rising at the weakest pace since the current run of pay inflation began just over four and a half years ago.
That will fuel concerns that the increase in employers’ national insurance contribution rates have hammered hiring in sectors such as retail and hospitality.
The wage slowdown is clearly bad news for workers but something that might reassure UK central bankers as they try to bring inflation, and inflation expectations, down.
Results from the recruitment company Hays underline how the jobs market has weakened.
Hays has reported that the fees it earns for placing candidates into jobs fell by 9% in the UK and Ireland in the third quarter of this year, and by 8% globally.
The company, which has cut its consultant headcount by 15% over the past year, also reported that fees from filling permanent positions worldwide was down 13%.
Visits to UK retailers fell last month, a sign that consumers are more nervous about spending.
Total UK footfall at retailers decreased by 1.8% in September, on an annual basis, worse than the 0.4% drop recorded in August, according to the British Retail Consortium.
The pound dropped to a two-month low against the US dollar last night, with investors showing sterling little love.
The UK currency dipped below $1.33 for the first time since 6 August. This morning it is trading at about $1.329.
It is also slightly lower against the euro, at €1.149.
Today’s key events
• 3pm BST: University of Michigan’s US consumer confidence index
We’ll be tracking all the main events throughout the day on our business live blog …
