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Services sector at seven-year low
Companies in the services sector have experienced their toughest quarter since 2001 in the last three months, according to research by the CBI.
The organisation revealed that only travel companies had seen an uptake in activity with restaurants, pubs, cinemas and other entertainment venues witnessing a slump in sales.
"Consumers are reining in spending on leisure, entertainment and eating out," said Ian McCafferty, the CBI's chief economic advisor. "But people are more inclined to take a well-earned break as rising costs put greater demands on household spending."
Profitability in the sector was at its weakest point since 1998, the research added.
Post Date: May 28th, 2008