The CBI business group has just issued a new warning that the recovery may be more drawn out than anticipated after a recent survey showed that UK services firms are rebounding in a varied fashion.
According to the survey results, business volumes have been able to stabilize for most of the sector in the past three months, but other consumer firms such as restaurants, bars, and hotels are still performing better than professional and business services companies.
Ian McCafferty, the chief economic adviser of the CBI, stated that the figures show that the economy is slowly started to recover overall but that there will still be a significant time period before growth starts to increase substantially.
One of the critical areas that will underpin the recovery is the fortunes of the powerhouse services in the UK since they account for around three quarters of the country’s output.
Figures from last Friday show good news for that sector as output from the last quarter of 2009 was reported to have risen from .1% up to .5%.
The highest business volumes were found by the CBI survey in the consumer services sector with 7% of all companies reporting that they have experienced an increase in revenues.
However, most professional and business services reported that their volumes have continued to fall instead of slowly starting to rise.
Yet, according to the survey most firms are still more positive about future prospects than they were last quarter even if profits have been a bit tighter due to inflation.