Service sector business stabilises, report shows

Date: March 02, 2010

Category: Contractor Industry News

Professional contractors operating in the UK's service sector have seen volumes of business stabilise in the past three months.

The latest CBI Service Sector Survey has revealed the value and volume of business in consumer services rose, by ten per cent and seven per cent respectively, bringing both to their highest levels since the second half of 2007.

However, difficult conditions in the business and professional services sector meant little changed in terms of value and volume, while prices and profitability suffered.

Both sectors saw employment fall, narrowing the opportunities for freelance contractors.

"Overall, these figures are consistent with our view that the economy is recovering slowly, but that we will have to wait a while before growth picks up," commented Ian McCafferty, chief economic adviser for the UK business organisation.

Mr McCafferty has also called on the government to set out a clear, robust path to return balance in the economy by 2015.

Posted by John Crawley