The results of this quarter’s survey have a particular significance as it was conducted in the period just following the ending of the war in Iraq.
The survey revealed that firms in the consumer services sector continue to struggle with falling profitability and volumes, with no recovery expected in the near term.
Consequently, firms in this sector are more concerned with defending their current market position than engaging in expansionary growth and investment.
By contrast, though expectations for a recovery among business and professional services firms were disappointed over the past three months, volumes in this sector held up well by comparison. Firms in this sector are still looking forward to a pick up in economic activity in the coming months, though they are nevertheless cautious about investment and business expansion.
This quarter the index focuses on:
