Service businesses have shed workers for five months in a row, a closely watched survey showed, amid warnings of a “loss of growth momentum” since the autumn budget.

According to the final S&P Global purchasing managers’ index (PMI) for February, service companies have cut employment for the longest stretch since early 2011, excluding the Covid-19 pandemic.

The drop in employment and hiring intentions has in part been triggered by the chancellor’s £25 billion rise in employers’ national insurance contributions, announced in October.

Tim Moore, economics director at S&P Global Market Intelligence, said: “There has been a clear loss of growth momentum since last autumn. Less upbeat business expectations and another month of sharply rising input prices led to net job shedding across the service economy