Services business volumes continue to fall in the three months to April – CBI Service Sector Survey

Business volumes in the services sector continued to fall modestly in the three months to April, according to the CBI’s monthly Service Sector Survey.

However, employment growth in the sector was mixed over the same period. Consumer services saw headcount rise slightly, while employment in business and professional services declined for the second month running.

Looking ahead to the next three months, business and professional services firms expect volumes and employment to return to growth. Likewise, consumer services headcount looks set to rise slightly, while consumer services volumes are also expected to grow – if realised, this would mark the first rise in activity since February 2022.

Key survey figures for this month include:

• Business & professional services: Volume of business -7%; Numbers employed -7%
• Consumer services: Volume of business -7%; Numbers employed +4%

Looking ahead to the next three months…

• Business & professional services: Volume of business +8%; Numbers employed +15%; average selling prices +34%
• Consumer services: Volume of business +6%; Numbers employed +5%; average selling prices +46%.

PRIVATE SECTOR ACTIVITY FALLS FOR NINTH SUCCESSIVE ROLLING QUARTER – CBI GROWTH INDICATOR 

Across the economy as a whole, private sector activity continued to fall in the three months to April, at a broadly similar pace to last month (-7% from -4% in March). Although this marks the ninth consecutive rolling quarter in which activity has fallen, private sector activity is expected to return to growth over the next three months (+7%).