Company investment uncertainty

Service sector firms are putting investment plans on ice for the year ahead because of uncertainty about demand, new research suggests.

A Confederation of British Industry (CBI) report says growing optimism recently among those in business and professional services is countered by companies in consumer services who see the outlook for the next three months as remaining poor.

Ben Jones, CBI principal economist, said: "With lockdown measures still in place, trading conditions remainextremelydifficult, with firms across the services sector reporting a quarter of falling volumes, profitability and employment. Consumer service activity, in particular, is expected to remain in the doldrums,thoughbusiness and professional services firms are more hopeful.”