Optimism grows in service sector

Business
growth has lead to an increase in optimism within the service sector according
to a quarterly survey.

In
the consumer services sector optimism has risen from minus nine in November to
plus 11 and in business and professional services the figure has risen from
minus 11 to plus 12 over the same period.

The
statistics, which are revealed in a survey published by the CBI and Deloitte
& Touche, are achieved by subtracting the percentage of firms saying they
less optimistic from those that are more optimistic.

Sudhir
Junankar, the CBI’s associate director of economic analysis, said, “The
recovery in optimism in both service sectors is based on business growth which
is so far unaffected by the slowdown in the US economy.

“Businesses
and professional service firms are facing acute cost pressures and falling
profitability as prices fall but they plan substantial IT spending to boost
efficiency.

“Consumer
services firms by contrast have been able to pass on some of the increases into
prices but intend to scale down their IT investments over the coming year.”

www.cbi.org.uk

By Ben Willmott. Click here to respond.

 

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