Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Britain’s services sector company profits fall for seventh consecutive quarter

by August 29, 2023
August 29, 2023
Britain’s services sector company profits fall for seventh consecutive quarter

Profits for Britain’s services sector companies have fallen for a seventh consecutive quarter, new figures suggest, as businesses continue to struggle under the weight of higher interest rates and stubborn inflation.

The latest quarterly services sector survey by the CBI has found that cost pressures and disappointing business volumes drove down profits for the consumer and professional services industries over the three months to August.

A net balance of 27 per cent of consumer services operators suffered a fall in profitability over the three months, albeit better than 53 per cent in the previous quarter, while a net balance of 19 per cent of professional services companies reported a decline.

The consumer services industry also recorded a sharp decline in business volume, with a net balance of 34 per cent of companies reporting a fall in volumes, compared with 22 per cent during the previous quarter. Professional services business was steady, with a net 2 per cent of companies reporting a weakening in activity.

With costs expected to remain well above the long-term average, the fall in profits is expected to slow in professional services but to decline at the same rate in consumer services.

The research echoes findings from the monthly composite purchasing managers’ index, which showed that a surprise downturn in the services industry in August had caused the private sector to contract at its fastest pace since the start of 2021.

The economy has recorded modest growth this year, boosted by the dominant services sector, which had continued to power ahead despite rising interest rates and inflation. However, S&P Global, which helps to compile the PMI survey, said that services industries had reported the weakest output in 31 months amid pressures from the cost of living crisis.

Both sets of figures will add to expectations that UK GDP is set to have contractedc during the third quarter, meaning that the economy would meet the first leg of a technical recession, which is defined as two consecutive quarters of negative growth.

Charlotte Dendy, the CBI’s head of economic surveys and data, said: “Many companies will continue to face a challenging time this autumn and winter as pressure on household budgets and tighter credit conditions continue to have an impact.

“Despite a fall in inflation and moderately lower energy costs, help is needed from government in the autumn budget to assist businesses in navigating another difficult winter where cost pressures are likely to continue to impact firms’ decisions to grow and invest.”

Elevated inflation and higher financing costs have caused investment plans for the next 12 months to deteriorate in both sub-sectors, with cutbacks expected on land and buildings and on vehicles, plant and machinery.

Read more:
Britain’s services sector company profits fall for seventh consecutive quarter

0
FacebookTwitterGoogle +Pinterest
previous post
Four in ten UK SMEs take over 90 days to pay their contract staff
next post
Investors demand clarity from government on net zero

You may also like

Businesses Struggle with AI and Green Tech Amid...

June 20, 2024

Net migration set for record high as Tories...

May 15, 2023

Businesses are embracing new product development after cost-cutting...

March 14, 2025

Why UK Elite Are Flocking to Caribbean Citizenship

February 20, 2025

Reeves’s National Insurance hike prompts firms to consider...

November 18, 2024

Vinted triples profits to £80m as second-hand fashion...

May 14, 2025

Advanced Poker Strategies – How to Become a...

December 19, 2022

Budget ‘weighing on growth’, warns Bank of England

December 20, 2024

AI Tools Enhance Productivity Without Reducing Jobs, Say...

November 22, 2024

Business leaders must adopt “bigger, faster and stronger...

April 17, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump’s Debanking Order Calls for Investigation, Something Tennessee Should Have Done

      August 9, 2025
    • MIKE DAVIS: Eric Tung is Trump’s pick to bring sanity to the Ninth Circuit

      August 9, 2025
    • How Europe’s car industry can survive the Chinese EV challenge

      August 9, 2025
    • Hiring Software & JavaScript Developers: Skills, Costs, and Best Practices

      August 9, 2025
    • Rakhi Butani on Skincare, Cooking, and the Power of Balance

      August 9, 2025
    • Jeremy Clarkson warns of ‘catastrophic’ UK harvest as farmers battle extreme weather and rising costs

      August 9, 2025

    Categories

    • Business (8,728)
    • Investing (2,191)
    • Politics (16,345)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved