The service sector suffers slowdown (From The Wiltshire Gazette and Herald)

The service sector suffers slowdown

SERVICE sector firms are increasingly pessimistic about the future because of the economic slowdown.

A survey by the CBI showed that hotels, cinemas and tour operators only enjoyed modest growth in recent months with rising costs outpacing prices.

It has left companies facing a squeeze on profits, which they expect to get worse.

Consumer service firms, such as bars and restaurants, said they hired slightly more staff in the past three months, but the availability of workers was likely to limit future expansion.

Ian McCafferty, the CBI's chief economic adviser, said: "The service sector in recent years has been an important driver of growth. With retailing and manufacturing both weak, the fact that services are slowing is particularly worrying."