Qualified advisers answering your
Financial Questions
call 0800 092 1245

UK services sector under pressure

A report by the Confederation of British industry (CBI) has dealt a bitter blow to those who had hoped that the UK economy was over the worst. Despite the fact that service sector sales and profitability were strong in the final quarter of 2009, and anticipated to grow in the first quarter of 2010, we actually saw a reduction in sales and over profitability. This is very much at odds with the beliefs of those in the services sector at the last CBI survey.

This has cast further doubt on the strength of the UK economic recovery and places more pressure on David Cameron and his coalition government to try and pump confidence and enthusiasm back into the UK economy. The services sector in the UK, after the ongoing demise of the manufacturing industry, is by far and away the engine room of the UK economy. It will prove a pivotal sector in the eventual recovery of the UK economy because ultimately it is a reflection of the confidence of consumers and the confidence of businesses.

It would appear that consumers are still concerned about the short to medium-term outlook for employment, an increase in taxes and a reduction in public-sector investment. The bumpy ride to an eventually UK economic recovery continues!

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details