Services Sector Sees Strong And Steady Growth

CBI Report Shows A Number Of Peaks In Professional Services

02.12.2014

The Confederation of British Industry's (CBI) latest quarterly survey has found the fastest employment growth in seven years in the business and professional services sector, including accountancy, legal and marketing firms.

Some 49% of companies in the business and professional services sector said they had increased their number of employees in the last three months, while just 7% were down, giving a balance of 42% - a record high for the survey.

Meanwhile, expenditure on staff training in the consumer sector rose to its highest level in 15 years, a trend that is expected to continue as businesses look to escape skills shortages.

Capital expenditure on land and buildings in the consumer sector also reached a four-year peak, while business and professional services spending on IT grow to levels not seen since 2007.

“Skills shortages are starting to bite, putting more of a brake on investment and future growth in consumer services," said Rain Newton-Smith, CBI Director for Economics.

"Therefore the spending rise in training in the sector is particularly encouraging."

Expert Opinion
The CBI’s research is the latest in a number of studies to highlight how many businesses have been recruiting and developing their talent base following the improvements seen in the economy.

"While this is of course positive news, it is vital that all businesses regardless of their sector carefully consider any potential growing pains which can emerge when planning expansion. It is particularly key that they have the necessary HR policies in place to comply with key employment regulations and ensure staff are aware of their responsibilities.

"Legal advice is a necessity to ensure that all core aspects are covered off."
Steven Beahan, Partner