Sentiment improving in services sector, study shows

Date: 27th May 2009

Small businesses in the services sector are seeing an upturn in fortunes, a new survey has suggested.

A poll by the Confederation of British Industry (CBI) found that business, professional and consumer services organisations all saw a slowdown in the decline of both volumes and values between the end of April and the middle of May.

Additionally, the investigation found that the situation is expected to improve further during the next quarter.

Chief economic advisor at the CBI, Ian McCafferty, said: "This survey suggests that the sharpest falls may now be over and that the situation is starting to stabilise.

"Although the situation is very tough for firms, some tentative grounds for cautious optimism are starting to appear in some areas."

The research also suggested that access to finance was causing cashflow difficulties, which could see more business managers turn to accountants for support.

An investigation by Data Services earlier in May found that about a third of smaller companies have opted to freeze wages in light of the economic situation.