Volumes of business in the service sector rose in the most recent quarter according to the CBI services survey, but while consumer services improved slightly, business services did not.
The value and volume of consumer services increased over the last three months with the survey balance up 10% the highest since August 2007. Profitability did not change much but with costs rising only 2%, the best figures since November 2007. Sales prices increased and are expected to rise again during the next quarter.
In business and professional services it was slightly different. Although value and volume of business was little changed, according to the survey, prices and profitability fell, giving a negative balance.
The survey also reported that both consumer and business services were cutting back on staff. It also reported that on the whole both sectors were more optimistic about the business situation than the last quarter and plans to expand were more numerous in consumer services than business services. A factor affecting service sector businesses expansion decisions was concern about the strength of demand and their ability to raise funds was considered a barrier to growth.
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