Service firms report varied outlook after demand falls

0 The consumer services sector suffered a ‘disappointing’ quarter as higher inflation took its toll The UK’S services sector has seen demand weaken, with consumer firms suffering amid rising prices.

Survey data published today by the CBI found that consumer services businesses, including hotels, bars, restaurants, travel and leisure, saw business volumes fall at the fastest pace since February 2012 in the three months to November, reaching a balance of -20 per cent. However, they expect volumes to edge up slightly in the quarter to February. In contrast, business and profes- sional services firms, covering the likes of accountancy and law, said volumes were stable, but would decrease in the next quarter, at -6 per cent.

Anna Leach, CBI head of economic intelligence, noted the negative impact of higher inflation on consumer services, adding that conditions for business and professional services remain “tough”. She also called on the UK Government to make “significant” progress in Brexit talks and agree transitional arrangements by the end of the year.