The current economic slowdown is hitting consumer services firms such as hotels, bars and restaurants, a new report shows.
According to the latest Confederation of British Industry (CBI) Service Sector report, such businesses endured an even worse quarter than they had feared, with business volumes and values falling at rates not seen since 2001.
Ian McCafferty, the CBI's chief economic adviser, said: "Services sector firms are concerned about their business prospects. Consumers are reining in spending on leisure, entertainment and eating out, while professionals offering services such as accountancy, property and law have seen their profits flatten off as costs continue to grow strongly."
Transport firms suffered worst of all, with hauliers experiencing the fastest fall in business volumes and values in 20 years.
Last week, David Frost, director of the British Chambers of Commerce, urged the government to abandon plans to increase fuel duty, stating that people are already being hit hard by the increased cost of oil.
