Partly Cloudy

Partly Cloudy

max temp: 25°C

min temp: 18°C

ESTD 1874 Search

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

Dame Fiona Kendrick:, chief executive of Nestlé  UK & Ireland

Food giant Nestlé has announced plans to close its defined benefit pension scheme, sparking the threat of industrial action.

The installation of solar panels on the roof of Precision Marketing Group's premises in Lamdin Road, Bury St Edmunds

A Suffolk-based firm will be among the organisations taking part in a nation-wide celebration of solar energy tomorrow.

The Treasury has sold another 1% stake in Lloyds Banking Group.

The taxpayers’ stake in Lloyds Banking Group has fallen to below 16% after the Government sold off another tranche of shares.

Candy Gaga'’s Wanda Hewell, right, and daughter, Cherish.

Tower Ramparts in Ipswich now has its very own castle – thanks to the success of a local sweet shop business.

Stansted Airport

A report into the future of Britain’s airports does not rule out a second runway at Stansted – and raises fears of extra night flights to the Essex airport.

Growth in manufacturing eased last month  to its slowest level in two years.

Britain’s manufacturing sector grew at its slowest pace in more than two years last month, impacted by subdued demand from Europe.

Speedy Hire
 has warned that its results for this year will come in

Tool rental business Speedy Hire saw nearly a third of its stock market value wiped off after it announced the shock departure of its chief executive and warned over a major blow to full year profits.

Greene King chief executive Rooney Anand.

Pubs and brewing group Greene King today posted another year of record revenues, with sales within its key Retail division topping £1billion for the first time.

Suffolk Coastal considers convenience store bid

Planning chiefs have responded to concerns about noise and antisocial behaviour arising from proposals for a new convenience store in Kesgrave by insisting on closing times being brought forward an hour and the installation of a barrier to restrict overnight parking.

Tim Dunford, managing director and master brewer at the Green Jack Brewery, third from left, with Beer for Summer judges Mark Dorber, left, and Charlie McVeigh of The Draft House, right, and Peter Gordon, on trade director of Budweiser Budvar.

A Suffolk brewing company is celebrating after winning a new national “Beer for Summer” competition.

Most read

Most commented

Topic pages