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Biz services holding back recovery

CBI bets on slow bounce

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Business and professional services are recovering much more slowly than consumer services although both sections of the economy expect some growth in the next three months.

Nine per cent of firms selling to consumers expect some growth in the volume of business in the next quarter and 12 per cent of firms offering business services expect some growth.

But 47 per cent of professional companies said business was below usual levels against 35 per cent of consumer companies.

Ian McCafferty, chief economic adviser at the CBI, said the survey showed the difference between the two sectors "with firms selling to households doing slightly better over the past three months. Prices in the Business and Professional Services sub-sector have continued to fall, reducing profits, and making conditions tougher ... Overall, these figures are consistent with our view that the economy is recovering slowly, but that we will have to wait a while before growth picks up.”

Researchers got replies from 180 companies.

More from the CBI here.

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