UK service firms see weak performance in Q3
A survey by the Confederation of British Industry (CBI) has today revealed a poor performance among services companies in the July to September period.
The group said a net 13% balance of service firms said profits had increased annually for the quarter, less than the 19% expected.
Business services firms such as accountancy and law practices had expected sales to improve over the three-month period but actually declined, which has led companies to be cautious about the outlook for the next three months.
CBI chief economic adviser Ian McCafferty, comments: “This confirms the weakness reflected in the third-quarter GDP data and underlines the fragility of the economic recovery.”
“Consumers and businesses are continuing to cut back on spending on goods and services, and firms operating in the sector are responding by cutting prices to stay competitive,” he added.
However, on a positive note, consumer services firms expect sales to grow in the next three months and are their most optimistic since February 2007, the CBI said.