Partly Cloudy

Partly Cloudy

max temp: 11°C

min temp: 5°C

Search

UK: Growth in service sector slows

PUBLISHED: 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.

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.

Search hundreds of local jobs at Jobs24

A ground-breaking ceremony was held at Harwich International Port today to mark the start of construction of the £10 million operations & maintenance (O&M) base for Galloper Offshore Wind Farm.

A multinational company which employs around 600 people in Glemsford could relocate out of the UK if Theresa May’s plans are rejected and Britain opts for a hard Brexit.

MENTA was announced as winner of the Business Support Organisation of the Year 2018 in the over £750,000 category, at the National Enterprise Network Annual Conference and awards earlier today.

The winner of the 2018 Briarbank Brewery homebrew competition has been revealed. Sir Lancerhop rides to victory.

Suffolk-based specialist MH Goals has completed the largest Football Foundation funded project in the country - Parklife in Liverpool.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24