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UK manufacturing industry shrinks at fastest rate in 11 months

Concerns remain about the outlook for global trade in 2025, with Donald Trump assuming the US presidency later this month having promised a slew of trade tariffs.

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Yahoo!finance: British factory output contracted at the fastest rate in 11 months in December, amid a swathe of job losses, growing concerns about rising business taxes and a worsening global economy.

The S&P Global UK manufacturing PMI survey, watched closely by economists, recorded a reading of 47.0 in December, from 48.0 in November.

Any reading above 50 indicates activity is growing while any score below means it is contracting.

The rate of job cuts hit a 10-month high, the survey found, with firms saying weak market conditions caused many to reduce their headcounts.

Company confidence fell to a two-year low, meanwhile, amid concerns about inflationary pressures, rising business costs and potential weaker economic growth this year.

Manufacturers said they were concerned about future cost increases, partly driven by rising taxes announced by Chancellor Rachel Reeves last year.

Companies will pay more in national insurance contributions (NICs) from April, while the minimum wage is also set to rise, which will make it more expensive to employ people.

Firms also cited a weakening global economic outlook, as exports fell due to lower demand in Europe, Asia and the UK.

Concerns remain about the outlook for global trade in 2025, with Donald Trump assuming the US presidency later this month having promised a slew of trade tariffs.

Rob Dobson, director at S&P Global Market Intelligence, said: “A stalling domestic economy, weak export sales and concerns about future cost increases led to the steepest contraction of UK manufacturing production for almost a year in December.

“Manufacturers are facing an increasingly downbeat backdrop. Business sentiment is now at its lowest for two years as the new Government’s rhetoric and announced policy changes dampen confidence and raise costs at UK factories and their clients alike.

SMEs are being especially hard hit during the latest downturn.

“This is sending a winter chill through the labour market. December saw the sharpest cuts to staffing levels since February.

Some companies are acting now to restructure operations in advance of the rises in employer national insurance and minimum wage levels in 2025.”

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International

Afghan fathers forced to selling children to survive

Abdul tells us he is willing to sell his girls for marriage, or for domestic work. “If I sell one daughter, I could feed the rest of my children for at least four years,” he says.

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Image credit : BBC

This article contains distressing details . In Afghanistan today, a staggering three in four people cannot meet their basic needs, according to the UN. Unemployment is rife, healthcare struggling and the aid that once provided the basics for millions has dwindled to a fraction of what it once was.

The country is now facing record levels of hunger, with 4.7 million – more than a tenth of Afghanistan’s population – estimated to be one step away from famine.

BBC reported that as dawn breaks, hundreds of men gather at a dusty square in Chaghcharan, the capital of Ghor province in Afghanistan.

They line the roadside hoping someone will come along offering any work. It will determine whether their families eat that day.

The likelihood of success, however, is low.Juma Khan, 45, has found just three days of work in the past six weeks that paid between 150 to 200 Afghani ($2.35-$3.13; £1.76-£2.34) per day.

“My children went to bed hungry three nights in a row. My wife was crying, so were my children. So I begged a neighbour for some money to buy flour,” he says.

“I live in fear that my children will die of hunger.”

His story is in no way unique.

Ghor is one of the worst-affected provinces.

The men here are desperate.

“I got a call saying my children hadn’t eaten for two days,” says Rabani, his voice choking up.

“I felt like I should kill myself. But then I thought how will that help my family? So here I am looking for work.”

Khwaja Ahmad barely gets out a few words before he starts sobbing.

“We are starving. My older children died, so I need to work to feed my family. But I’m old, so no one wants to give me work,” he says.

When a local bakery near the square opens up, the owner distributes stale bread among the crowd.

Within seconds, the loaves have been pulled apart, half a dozen men clutching onto precious pieces.

Suddenly another scrum occurs.

A man on a motorcycle comes by wanting to hire one labourer to carry bricks. Dozens of men throw themselves at him.

In the two hours we were there, only three men got hired.

In the communities nearby – bare homes scattered over barren, brown hills, set against the snowy peaks of the Siah Koh mountain range – the devastating impact of unemployment is clear.

Abdul Rashid Azimi takes us into his home and brings out two of his children – seven-year-old twins Roqia and Rohila.

He holds them close, eager to explain why he’s making unbearable choices.

“I’m willing to sell my daughters,” he weeps. “I’m poor, in debt and helpless.

“I come home from work with parched lips, hungry, thirsty, distressed and confused. My children come to me saying ‘Baba, give us some bread’. But what can I give? Where is the work?”

Abdul tells us he is willing to sell his girls for marriage, or for domestic work. “If I sell one daughter, I could feed the rest of my children for at least four years,” he says.

He hugs Rohila, kissing her as he cries. “It breaks my heart, but it’s the only way.”

“All we have to eat is bread and hot water, not even tea,” says their mother, Kayhan.

Two of her teenage sons work polishing shoes in the town centre. Another collects rubbish, which Kayhan uses as fuel for cooking.

Saeed Ahmad tells us he has already been forced to sell his five-year-old daughter, Shaiqa, after she got appendicitis and a cyst in her liver.

“I had no money to pay the medical expenses. So I sold my daughter to a relative,” he says.

Shaiqa’s surgery was successful. The money for it came from the 200,000 Afghani ($3,200/£2,400) she has been sold for.

“If I had taken the whole sum at that time, he would have taken her away.

So I told him just give me enough for her treatment now, and in the next five years you can give me the rest after which you can take her,” explains Saeed.

She puts her tiny arms around his neck. Their close bond is evident, but in five years, she will have to leave and go to the relative’s home.

“If I had money, I would never have taken this decision,” Saeed says.

“But then I thought, what if she dies without the surgery? This way at least she will be alive.”

(Source: BBC)

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International

Kenyan transport operators suspend strike for one-week to allow talks

Federation of Public Transport Sector CEO Kushian Muchiri welcomed the development, saying negotiations had begun in earnest, though he noted that earlier engagement could have prevented the disruption.

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Photo: Interior Cabinet Secretary Kipchumba Murkomen.

Kenyan transport operators (Matatu) on Tuesday suspended their ongoing strike for one week to allow high-level consultations between government and transport sector stakeholders aimed at resolving the dispute over fuel prices and related concerns.

The Star reported the Interior Cabinet Secretary Kipchumba Murkomen to have said that the decision followed agreement on the need for urgent dialogue to address the grievances raised by operators.

“There was need for negotiations with the stakeholders at a high level and they will take place within the next one week,” Murkomen said.

He added that the suspension of the strike was necessary to create room for consultations and reduce further disruption to transport and economic activities.

“The strike to be suspended for one week to provide an avenue for consultations,” he said.

The suspension comes after days of transport disruptions linked to protests and industrial action over rising fuel prices, which had left many commuters stranded and forced others to walk long distances.

Federation of Public Transport Sector CEO Kushian Muchiri welcomed the development, saying negotiations had begun in earnest, though he noted that earlier engagement could have prevented the disruption.

“As much as we would have been happy, we are also glad that at least negotiations have started in earnest,” Muchiri said.

He added: “Had we been taken seriously on Friday we would not be here. On behalf of the transport sector, mine is to urge all our members to resume operations immediately so that we can assist our customers.”

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International

Kenyans protest fuel price hikes, four dead, 30 injured

On Monday morning, roads into the capital Nairobi were blocked by striking transport operators and scattered groups of protesters.

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AFP via Getty Images

Thousands of Kenyan commuters have been stranded and businesses paralysed as public transport operators went on a nationwide strike to protest against recent increases in the cost of fuel prompted by the Iran war.

The Transport Sector Alliance said on Sunday that vehicles affiliated with its member associations would stop operating from midnight in protest, while police said they would act to tackle any disruptions.

“We lost four Kenyans ⁠in today’s violence, which also saw more than 30 people injured,” Interior Minister Kipchumba Murkomen told a televised press conference.

Kenya’s Energy and Petroleum Regulatory Authority last week raised retail fuel prices by as much as 23.5% – after hiking them by 24.2% last month – as the conflict in the Middle East squeezed global oil and gas supplies.

On Monday morning, roads into the capital Nairobi were blocked by striking transport operators and scattered groups of protesters.

Key roads in the capital Nairobi remained largely empty, forcing some commuters to walk to work, with other parts of the country also affected by the transport crisis.

Some businesses in Nairobi remained shut and schools asked students to stay at home.

Protesters have been blocked roads and lighting burning barricades. More than 200 have been arrested, police say.

The strike comes days after the authorities raised petroleum prices to record levels, with costs increasing by more than 20%.

Police fired tear gas in some areas while some protesters lit tyres ​to cut access to key roads, worsening congestion and leaving many commuters stranded.

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