Service sector slumps as it braces for Brexit

Josh Hall's picture
by Josh Hall

The UK's service sector has seen a dip in both profits and confidence as uncertainties over Brexit deepen.

The latest poll from the CBI found that consumer services companies such as hotels and restaurants saw a fourth consecutive fall in activity during the last quarter, with expectations amongst these businesses at their weakest for more than seven years.

Meanwhile professional services firms saw their most dramatic fall in profitability since 2011.

The overall service sector accounts for around 80 per cent of the UK's total economic output, and is considered crucial to the country's economic stability.

Commenting on the research, CBI chief economist Rain Newton-Smith said: “The outlook for services firms is bleak at the moment, with Brexit uncertainty holding back investment and expansion plans.

“The idea of a no-deal Brexit is clearly weighing down the economy and is affecting businesses both big and small.”

The CBI is amongst a number of leading business groups to have called on the government to reach an agreement with the European Union to avoid a disorderly no-deal Brexit.

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