Feeds

UK services still shrinking

Some small hope for tech spending though

The Power of One Brief: Top reasons to choose HP BladeSystem

Business and professional services have had a flat quarter with business volume and prices broadly unchanged, while consumer services have seen an unexpected decline.

Consumer service companies were expecting modest growth in the quarter rather than a fall. Some 30 per cent of consumer firms said the value of business rose, but 38 per cent said it had fallen.

Volume of business fell for 41 per cent versus 23 per cent who saw a rise. The survey was carried out by the CBI between 27 October and 10 November.

For business and professional services value was down three per cent and volume up three per cent. Companies expect a four per cent fall in value in the next quarter and a seven per cent fall in volume.

29 per cent of business service firms said they'd seen prices fall in the quarter, and 13 per cent had seen a fall in profitability. Twenty per cent of companies expect a further fall in profitability in the next three months.

Ian McCafferty, chief economic adviser to the CBI, said the CBI survey of service companies showed sluggish demand was to blame for the bumpy recovery for the service sector. He said consumers were cutting back on spending while professional firms were being hit by falling prices, rising costs and less business.

McCafferty added that firms are less optimistic now than they were three months ago.

In terms of investment nine per cent more firms intend to invest in IT equipment than don't, and a balance of eight per cent of companies expect to increase employment.

Researchers spoke to 169 companies. ®

Reducing security risks from open source software

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.