Services sector braced for a bleak winter as cost pressures mount 

0

Services sector braced for a bleak winter as cost pressures force bosses to cut back investment spending

The dominant services sector is braced for a bleak winter with optimism plummeting as cost pressures mount.

The sector, which covers everything from banking to hospitality, makes up 80 per cent of the economy. 

But businesses faced record rises in costs and selling prices in the three months to August, according to the CBI.

Cost crunch: The hospitality sector, which covers everything from banking to hospitality, makes up 80% of the economy

The lobby group’s poll of 199 firms found the increased costs have hit profits and led to bosses cutting back investment spending. 

Output for business and professional services firms was flat over the summer, but is expected to ‘fall sharply’ over the next three months, the CBI data showed.

But findings from auditor PwC found that 12 stores closed every day on average in the first half of the year – the lowest level in more than seven years – compared with a peak of 61 a day when Covid struck in 2020.

PwC said the drop in closures was a ‘reason for optimism’. But it has joined the CBI in warning that the outlook is only expected to worsen.

FOLLOW US ON GOOGLE NEWS

 

Read original article here

Denial of responsibility! Vigour Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment
Enable Notifications OK No thanks