The United Kingdom's economic recovery appears to be spreading to the service sector, which saw sales grow in the three months to May.
The Confederation of British Industry (CBI) announced that consumer services firms saw their sales volumes rise over the quarter; with a positive net balance of 26 percent of firms surveyed saying they had seen volumes rise in the past three months.
The survey of 182 companies in April and May showed that UK companies providing services to consumers predict volumes will continue to grow at the fastest rate in five-and-a-half-years.
Service sector sales during the three months grew less strongly than in the previous quarter, and weaker than expected pricing power means firms are struggling to raise profits. However, sales volumes among business and professional services firms, such as employment agencies, increased at the fastest rate for three years.
Evidence that the largest sector of the economy is seeing sustained growth will increase expectation that the Bank of England will raise interest rates on Thursday.
The survey found that service industries expanded for the 14th successive month and now account for two-thirds of the UK's economy. |
