Britain's service sector continues to improve, CBI reports

Confidence levels among businesses operating in Britain’s service industry hit their highest levels since the end of 2007 in the second quarter of this year, it has been revealed.

Research carried out by the Confederation of British Industry (CBI) for its latest Service Sector Survey found that this increase in confidence has been brought about partly through improved business levels across the sector.

Most notably, both the value and volume of business among businesses operating in the CBI’s Business and Professional Service category were up over the three months to the end of June.

At the same time, however, those firms in the Consumer Services category continued to see declines in rates of business.

This is despite a significant proportion telling the CBI that they are confident that the situation is likely to improve over the third quarter of the year.

Commenting on the findings, the CBI’s head of economic analysis Lai Wah Co said: ’We are still seeing consumers rein in their spending on services, but no longer at rapid rates.

’And across the service sector, prospects for business expansion and investment are the least gloomy for some time.’

Earlier this month, the SMMT reported that the decline in UK car production eased in July, with the government’s scrappage scheme cited as a major factor behind the sector’s improvements.
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