Partly Cloudy

Partly Cloudy

max temp: 14°C

min temp: 7°C

ESTD 1874 Search

UK: Growth in service sector slows

14:00 26 August 2014

Group of people in queue at bank. Growth in the services sector has slowed, according to the CBI.

Group of people in queue at bank. Growth in the services sector has slowed, according to the CBI.

(c) Ryan McVay

Growth in the dominant services sector slowed in the three months to August, according to latest figures from business lobbying organisation the CBI.

shares

It found that consumer services - including hotels, bars, restaurants, as well as travel and leisure firms - experienced the weakest expansion in a year.

Meanwhile, business and professional services - including accountancy, legal and marketing firms - grew at the slowest pace since November.

The services sector represents more than three-quarters of UK output and has led the economy out of recession.

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.”

The CBI said the poll of 215 firms revealed increased concern that the availability of professional or clerical staff was likely to limit expansion over the next year.

The survey found that in consumer services, 43% of firms said business volumes were up compared with three months ago and 17% said they were down, giving a balance of plus 25%, down from 42% in May and the lowest level since last August.

Optimism over the business situation was at plus 43%, lower than in May.

In business and professional services, business volumes showed a balance of plus 16%, down from May and last lower in November. Optimism fell to plus 31%, its lowest level since May last year.

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Mulberry Tree owner Des Scicluna who has been having problems with N Power for the last four years.

A frustrated pub landlord has taken action after an energy supplier pursued him for unpaid bills for more than four years – despite the firm never having supplied gas or electricity to the establishment.

A new report suggests that firms are running out of options to hire staff amid a continued shortage of skilled workers.

The jobs market is heading for “turbulence”, fuelled by uncertainty over the EU referendum and the impact of the national living wage, according to a new report.

A view of the TATA Steel Plant in Scunthorpe.

Liberty House has confirmed it will put in a formal bid to buy Tata Steel’s UK assets.

Probes by HM Revenue and Customs (HMRC) into tax avoidance schemes raked in an additional £494 million in income tax for Treasury coffers last year, figures from law firm Pinsent Masons show.

Probes by HM Revenue and Customs (HMRC) into tax avoidance schemes raked in an additional £494 million in income tax for Treasury coffers last year, figures from law firm Pinsent Masons show.

File photo dated 15/09/14 of HSBC cash machines, as the bank posted a sharp drop in profits for the first three months of the year after it was hit by

HSBC has posted a sharp drop in profits for the first three months of the year after it was hit by “extreme levels of volatility” in financial markets in January and February.

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24