CBI: Service sector shows signs of life
THE ECONOMY showed hints of recovery in the last three months, according to an influential survey of the vital services industry published today.
Business volumes did fall in the quarter, according to the Confederation of British Industry’s (CBI) services sector survey – but at a slower rate than in the previous three months.
In consumer services, a balance of 25 per cent of firms said business volumes fell over the period – an improvement from the 41 per cent in November’s survey who suffered falling business.
For firms in business and professional services, that balance stood at 11 per cent, worse than the six per cent seen in November – though respondents expect conditions to worsen more slowly again in the next three months.
Employment growth held up in the professional services sector, with a net balance of 10 per cent reporting jobs growth, and a balance of eight per cent expecting to increase headcount in the coming three months.
“Although volumes of business activity continued to worsen across the UK services sector in the past quarter compared with the previous quarter, there are some tentative signs that conditions may be levelling out,” said the CBI’s Ian McCafferty.
“Business confidence remains fragile, and will continue to be so given the continuing uncertainty in the Eurozone. However, there are some signs that after the very sharp fall in confidence at the height of the crisis last autumn, sentiment is stabilising.”