CBI May Service Sector Survey supports anecdotal growth
Published: 4th June 2018
The CBI’s latest (May) service sector survey has indicated that business and professional services volumes rose at the fastest pace since August 2015, optimism improved at the strongest rate in a year and, although there was a mixed picture across the wider service sector (with those firms involved in consumer services the most gloomy), employment expanded moderately across the sector. The CBI’s research suggests that in the three months to August, business and professional services firms expect volumes, profitability, and employment to continue expanding at a healthy pace, with profitability in particular to grow at the fastest pace since August 2015. Next quarter, volumes growth is expected to be steady, while profitability is set to improve further.
Brewster Pratap Partner Nigel Brewster commented that “Our own performance in the recruitment sector supports the CBI’s national research in that volumes have grown steadily throughout Q2”. He went on to say “Despite the CBI’s report indicating a mixed picture of performance across sub-sectors in the quarter to May, we believe that the UK recruitment sector is currently in good shape and is well placed for further growth, despite the predicated headwinds in the second half of 2018 and into 2019. The CBI’s service sector report is generally positive about the prospects for the rest of 2018, with growth across the sector as a whole expected to accelerate, underpinned by steady growth in the business and professional services sector, alongside a recovery in consumer services volumes growth”.