Demand in the services sector weakened in the three months to November, the latest quarterly Service Sector Survey from the Confederation of British Industry showed Monday.
Business volumes were stable in business and professional services firms. But volumes were expected to fall slightly in three months to February.
At the same time, business volumes in consumer services, which include hotels, bars, restaurants, travel and leisure, declined at the fastest pace since February 2012. Nonetheless, volumes were expected to increase slightly over the next three months.
“It’s no surprise that consumer services firms are having a tough time, as people feel the pinch in their pockets from higher inflation,” Anna Leach, CBI head of economic intelligence, said.
“While weaker demand appears to have hit employment in consumer services last quarter, firms are looking to resume hiring next quarter as demand stabilizes.”
Further, she said conditions for business and professional services also remain tough, and signs that firms are pulling back on their investment plans for the year ahead are concerning.
The material has been provided by InstaForex Company – www.instaforex.com
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