Britain’s business services down, weakest in 8 years

28.11.2019 - Korneychuk Evgeniya
Britain’s business services down, weakest in 8 years

Profits from professional and business services firms in the UK fell the lowest since 2011 for a second quarter running as businesses are also cutting down on investments, according to the Confederation of British Industry (CBI).

CBI surveys have consistently showed a pessimistic outlook of the British economy as businesses face political uncertainties caused by Brexit and the upcoming national election on Dec. 12.

“The current economic climate is holding back UK services firms, which are reporting falling sentiment, declining volumes and weaker profitability. Neither is the outlook expected to improve,” said Rain Newton-Smith, chief economist at CBI.

Investing in machinery, vehicles, and plant were the lowest since 2010, while business and professional services profitability gauge were at -25 in August.

Overall, there was a drop in optimism for consumer services firms, at November’s level of -25, in comparison to August’s -28. Professional and business services picked up from -31 to -20.

Services sectors account for almost 80% of the British economy, which rose by 1.0% year-to-year in Q3 of 2019. This was the weakest since 2010, as shown by official figures.

Services sector grew by 1.4%, but became more dependent on government spending than it ever did since 2013.

CBI’s figures are the results of survey conducted on 179 business and professional service firms on Oct. 29 to Nov. 13.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?