UK Survey Says Confidence Level Drop Before Holiday Season

A dip in confidence across the services sector will limit growth heading into the new year, according to a wide ranging business survey.

High demand going into the pre-Christmas period for leisure, hotels and professional services was unable to maintain the buoyant confidence levels seen earlier in the year, the CBI said in its quarterly report on the sector.

A price freeze will also dent the profitability of business and professional services as intense competition limits inflationary pressures, it added.

But the overall growth of the sector was assured, it said, following a long period of expansion and healthy employment numbers.

 
Rain Newton-Smith, CBI director for economics, said there were encouraging signs that firms had increased investment in IT and skills, though skills shortages were beginning to limit the room for many firms to expand.

She said: “Growth across the services sector is expected to continue into the new year. And it’s good to see investment spending in IT at near record levels.

“But skills shortages are starting to bite, putting more of a brake on investment and future growth in consumer services. Therefore the spending rise in training in the sector is particularly encouraging.”

Many of Britain’s key industries have reported skills shortages over the last six months as the unemployment register has shrunk and employment levels hit all-time highs.

via The Guardian

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza