Business services 'stabilising'

Date: 1st March 2010

Companies providing services to other businesses are witnessing a stabilisation in their business volumes, new research has found.

The study by the Confederation of British Industry (CBI) revealed that firms selling consumer services are doing even better.

According to the report, volume of business in the consumer services sector was up by seven per cent over the last quarter.

In contrast, business volumes in the business and professional services sector declined by one per cent in the three-month period.

CBI chief economic adviser Ian McCafferty said: "Business activity has stabilised across the service sector, however the fortunes of the consumer services and the business and professional services differ, with firms selling to households doing slightly better over the past three months.

"Prices in the business and professional services sub-sector have continued to fall, reducing profits and making conditions tougher. 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."