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Services sector in record decline
Monday November 28th 2011
In the last quarter, businesses in the country's key services sector have had to cope with the most rapid period of falling demand experienced in the last 30 months, according to the Confederation of British Industry (CBI).
Those companies which have experienced the most savage fall off in activity are those that rely on discretionary spending as consumers have cut back on hotels, eating out and travel and leisure as a whole.
The last time that companies which provide services to the public experienced such quick falls in demand was in May 2009, according to the CBI. The business survey also revealed that levels of optimism had fallen since the last time firms were polled in July.
Accountants, lawyers and solicitors and marketing firms are braced for further falls, having also been hit by plummeting demand in the last quarter. They predict that the eurozone crisis is going to be a further negative influence on the economy and the economic outlook.
The spectre of recession will loom ever larger as a result of the CBI results, as the services sector is responsible for around 75% of UK economic output.
Copyright © Press Association 2011
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