Feeds

UK services still shrinking

Some small hope for tech spending though

Security for virtualized datacentres

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. ®

Security for virtualized datacentres

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.