"Business confidence and activity continued to deteriorate heavily across the services sector in the quarter to August, albeit at a somewhat slower pace, according to the CBI's latest Service Sector Survey. Furthermore, cost pressures continued to mount. With average selling prices rising at a much slower pace than over the last two quarters, profitability dropped further. This was the case across both major sub-sectors, though price inflation remained comparatively higher in consumer services."
"In addition, services firms also reported another decline in headcount, albeit at a slower pace than in the previous rolling quarter. Looking ahead, firms across the services sector expect to see business volumes decline again over the quarter ahead, though at a somewhat slower pace. Cost growth is also set to ease in the three months to November, albeit to rates that are still high by historical standards."
Services sector activity and confidence deteriorated heavily to August, though at a slower pace. Cost pressures continued to rise while average selling prices increased much more slowly than in the prior two quarters, cutting profitability across both major sub-sectors, with consumer services showing higher price inflation. Headcount fell again but at a slower rate. Firms expect business volumes to decline over the next quarter, with cost growth easing slightly but remaining historically high. Costs are expected to outpace selling price inflation, prompting further profit declines. Investment plans are constrained, with cuts in land & buildings and vehicles, plant & machinery, and unchanged IT spending. Demand uncertainty and internal finance shortages limit capital spending.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]