Service sector business decline

The Confederation of British Industry has noted that business volumes have fallen for small businesses working in the service sector in the last quarter. The information released by CBI has said that the fall has been over 20%, and they note that this has been the most significant drop since late 2009.

In the consumer services area, values declined around 15%, while business volumes dropped 25%. Richard Woodhouse from CBI has said, “This is further evidence of the decline in the services sector. With the economy the way it is people are having to cut back their spending and this will affect the amounts that households spend on services.

“Something that we did not expect was the fall in business and professional services as well, we thought this would remain steady or grow. This type of services has continued to grow its staff numbers however while consumer services are restricting hiring at the moment.”