Overcast

Overcast

max temp: 16°C

min temp: 12°C

ESTD 1874 Search

WIN A NEW HYUNDAI i10 - See the EADT on June 8 for full details

Economy: Service sector growth to rebound after summer pause, says CBI

06:00 26 August 2014

Katja Hall, CBI deputy director-general.

Katja Hall, CBI deputy director-general.

Archant

Growth in the UK’s powerhouse service sector slowed slightly over the past three months, but optimism over the recovery continued to increase, according to a new survey.

shares

The latest CBI Services Sector Survey also found that the rate of growth in the sector, which accounts for around three-quarters of the entire UK economy, is expected to improve once more in the coming quarter.

Growth in business volumes in the three months to August eased compared with recent surveys, and profitability also rose at a slower pace, but this came after multi-year highs in the previous quarter.

Other indicators in the survey painted a healthier picture of activity in the sector. Growth in numbers employed in the business and professional services sector, which includes accountancy, legal and marketing firms, reached its highest rate in nearly seven years, with expectations for the coming three months at a record high since the survey began in 1998.

And investment intentions for the year ahead in the consumer services sector, which includes hotels, bars, restaurants, travel and leisure firms, are particularly robust, with plans for spending on vehicles, plant and machinery also at a record high.

However, the survey revealed increased concerns that the availability of professional and clerical or other staff is likely to limit business expansion over the next year.

Katja Hall, CBI deputy director-general, said: “The slowing in the pace of growth and profits in the service sector reflects our view that momentum in the economy will ease in the second half of the year.

“But this doesn’t necessarily mean a gear change in the recovery. It’s encouraging that our service sector firms continue to feel upbeat, especially when looking ahead to the next quarter.

“Employing more staff and planning to increase investment are positive steps in the quest for sustainable growth. However, skills shortages mean it is increasingly hard for firms to find and hire the right people.”

shares

1 comment

  • Tory party propaganda !, grabbing at straws !, they are lies, damned lies then 'Statistics' !, not long now to May 2015 !

    Report this comment

    freedomf

    Tuesday, August 26, 2014

The views expressed in the above comments do not necessarily reflect the views of this site

The new Escape lounge at Stansted Airport.

A new business lounge at Stansted Airport has been used by more than 9,000 visitors in its first month.

Rooney Anand, chief executive of Greene King.

Proposals from pubs and brewing company Greene King designed to address concerns over its agreed acquisition of the Spirit Pub Company look set to be backed by the UK’s competition authority.

Peter Bennell of Haven Power.

Haven Power, the specialist supplier of electricity to UK businesses, has signed a deal with Thames Water worth more than £500million over the next five years.

Retail sales are

Retail sales are “bounding ahead” as falling prices and a boost to consumer spending power is giving retailers the most upbeat outlook for 27 years, according to new figures.

A Ryanair passenger plane after take off from Stansted Airport.

Budget airline Ryanair saw profits growth take off last year as a revamp designed to improve its image and attract business customers sent earnings soaring by 66%.

The New Anglia Growth Hub team, including its business growth advisers who offer free support to businesses in Suffolk and Norfolk.

New Anglia Growth Hub has beaten its target of providing support for 3,000 businesses in its first year.

Andrew Rowe, managing director of Concertus.

Andrew Rowe, managing director at Ipswich based Concertus Design & Property Consultants, has been appointed as finance director for SPACES, the new society that has been formed from a merger between SCALA (Society for Construction and Architecture in Local Authorities) and SCEME (Society of Electrical and Mechanical Engineers serving Local Government).

Greene King apprentice Tamara-Leigh Kirkham.

Greene King has been named VQ Large Employer of the Year for 2015, in recognition of its support for members of its workforce undertaking vocational qualifications (VQs).

Sizewell A and B

Staff at the redundant Sizewell A nuclear power station will have to wait to find out if their jobs are safe from planned redundancies.

The opening of Precision Marketing's new headquarters in Bury St Edmunds.

An expanding marketing services firm celebrated the official opening of its new head office in Bury St Edmunds yesterday.

Most read

Most commented

Topic pages