The service sector upturn has arrived with business volumes rising across the sector at the fastest rate for over a year and growth in profitability hitting a near three-year high.
A quarterly survey, published by the CBI and Grant Thornton, shows business volumes increased at the fastest rate for over a year among business and professional services firms, such as employment agencies and business travel services. In addition, business volumes rose at the fastest rate for over five years among consumer services firms, such as hotels and restaurants.
Forty-three per cent of business and professional firms saw business volumes rise over the past three months, while 25 per cent saw them fall. The balance of plus 18 per cent compares with plus four per cent in the previous survey. Business volumes are now expected to rise by a balance of plus 47 per cent over the coming quarter, the most positive prediction in the survey's five-year history.
