Sector lifted by foreigners’ spending
KOREANS G0 BODY SHOPPING
BY DAVID CRAIK THE UK’s dominant services sector soared to a threemonth high yesterday as overseas visitors splashed their cash in bars and hotels.
However, it didn’t dampen warnings that the UK economy, suffering from weaker manufacturing and construction demand, was beginning to stall.
Analysts expect GDP to grow 0.4 per cent in the first quarter, down from 0.7 per cent seen in the last three months of 2016.
The Markit/CIPS Index of the services sector, which accounts for three-quarters of UK GDP, recorded a mark of 55 in March, two more than in February. Any GALLIFORD Try have abandoned billionpound takeover talks with rivals Bovis Homes. Galliford said the two housebuilders could not agree on a price.
Meanwhile Bovis, whose previous boss David Ritchie left in January following a profit warning, announced that former Galliford boss Greg Fitzgerald would be Ritchie’s replacement. ALLOWING 10-pin bowlers to keep their own shoes on has helped operator Hollywood Bowl rack up higher sales.
“Customers didn’t like wearing shoes that several other people had been playing in,” a spokesman said.
Sales in the six months to March 31 rose 7.8 per cent and the company plan to open three new centres this year. reading over 50 signifies growth. Service sector bosses said workload was up, helped by client demand and product launches. Some firms said the plunging pound had led to new sales inquiries from abroad, while most were optimistic about growth for the rest of the year.
However, many also cited Brexit-related uncertainty as a factor for holding back spending decisions. The number of jobs being created in the sector was also the weakest since last August.
IHS Markit’s Chris Williamson said: “UK business activity growth regained momentum after a low in February but fails to change the picture of an economy that slowed in the first quarter.” POSTER GIRL Beyonce DIESEL drivers racing to beat vehicle excise duty charges have helped fuel the best ever month for car sales.
Society of Motor Manufacturers and Traders figures show that there was an 8.4 per cent year-on-year rise in new cars registered in March to a record 562,337.
They said drivers brought forward purchases to avoid new VED charges, including a higher fee for low emission petrol and diesel cars that came in on April 1.
As a result, more diesel cars were sold in March than any other month. Mike Hawes of SMMT said: ”This probably means we will see a slowdown in April.” THE Body Shop are being eyed up by South Korean firm CJ Group, who are considering a near £900million bid. CJ, who have interests from entertainment to logistics, food and biopharmaceuticals, confirmed they were considering an approach for the chain. The Body Shop were launched by the late Dame Anita Roddick in 1976. In 2006 they were bought by L’Oreal, who have used Beyonce in advertising, for £650million. L’Oreal said last year they were exploring “strategic options” for the firm, with industry insiders believing they are up for sale for £859million. The Body Shop have struggled in recent years, with sales down five per cent to £784million in 2016.