CBI Service Sector Survey

Data Services

Source: CBI Economics
Source Link: https://www.cbi.org.uk/
Frequency: Monthly
Next Release(s): August 29th, 2025 4:30 AM

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Key findings from our monthly Services Sector Survey showed:
- Business volumes in the services sector fell in the three months to July (-35%), at a faster pace than in the quarter to June. The latest data marked nine consecutive rolling quarters of decline.
- Both business & professional services (-37%) and consumer services (-30%) volumes fell through the quarter.
- But trends between the two sectors diverged: business & professional services saw the fastest fall in activity since October 2020, while consumer services reported the slowest decline in nine months.
- Hiring intentions within the services sector remain weak. Business & professional services expect headcount to fall over the next three months (-19%), while consumer services companies expect a comparatively sharper fall in numbers employed (-37%).
- Selling price expectations in the services sector have eased close to long-run averages (+11%; long-run average +7%). Inflation expectations have retreated in both business & professional services (+7%) and consumer services (+24%).
Source
The UK services sector remained under pressure in the quarter to June, with business volumes declining across both segments and hiring intentions weakening further.
- Business volumes in the services sector declined in the three months to June (-24%), at a broadly similar pace to the quarter to May. The latest data marked eight consecutive rolling quarters of decline.
- Both business & professional services (-20%) and consumer services (-43%) volumes fell through the quarter.
- Hiring intentions within the services sector remain weak. Business & professional services expect headcount to fall modestly over the next three months (-10%), while consumer services companies continue to expect a sharp fall in numbers employed (-36%).
- Selling price expectations (+24%) for the quarter to September are elevated and stand well above the historic average (+7%). Inflation expectations in business & professional services were broadly unchanged from May (+23%) and have accelerated somewhat for consumer services firms (+29%). Both readings remain above their long-run averages.
Source
The UK services sector continued to weaken in the quarter to May, with business confidence deteriorating sharply, business volumes declining, and cost pressures intensifying across both business & professional and consumer services.
- Business & professional services optimism fell to -43% (from -28%), with business volumes down -18% and expected to drop further (-29%) next quarter.
- Business volumes remained weak across both the business services and consumer services sectors with the former index at -18% and the latter index down to -36%.
- The profitability measure remained deeply negative with business services at -34% and consumer services at -43%. Both indexes are expected to fall to -47% in the next three months.
- Selling prices in business services rose at their fastest pace in two years (+26%), while costs surged +60% and are expected to rise +63% next quarter.
- Consumer services optimism remained deeply negative at -42%, with business volumes down -36% and expected to fall further (-43%) in the next quarter.
- Headcount fell -28% in consumer services and is expected to fall -36% next quarter; business services hiring was flat but projected to decline -11%.
- Investment intentions deteriorated across both segments, with planned cuts in IT, vehicles, and property, and demand uncertainty cited as the main constraint.
Charts
Source
The UK services sector business volumes index declined to -24% in the three months to April, marking the sixth straight quarterly contraction, though the pace eased slightly from March.
- Business & professional services volumes fell -20%, while consumer services volumes dropped -41%.
- Hiring expectations remain negative, with business & professional services at -17% and consumer services at -42%.
- Selling price expectations for the next quarter are elevated at +27% (vs long-run average of +7%).
- Inflation expectations were steady at +23% for business & professional services and +40% for consumer services.
Source
The UK services sector business volumes index declined to -27% in the three months to March, slightly improving from February’s pace but continuing a prolonged period of weak activity.
- The business & professional services volumes index fell to -22%, while the consumer services volumes index declined to -34%.
- Hiring intentions remain weak, with the business & professional services index at -14%, and the consumer services index at -36%.
- The index tracking firms’ price growth expectations for the next quarter remained elevated at +27% (long-run average: +7%).
- The business & professional services inflation expectations index rose to +24% (from +19% in February), while the consumer services inflation expectations index eased to +41% (from +48%) but stayed historically high.
Source
UK service sector general business sentiment deteriorated in February. The business services optimism index was only up 1 pt to -28, and the consumer services optimism index was unchanged at -55, the joint worst since August 2022.
- Sentiment was impacted by low business volumes across both segments: business services down -10 pts to -26, consumer services unchanged at -53.
- Average consumer services selling price inflation picked up in the three months to February (+36%) compared to November 2024 (+10%).
- Business services profitability fell strongly (-37%), at the fastest pace since August 2020 (-46%), whilst also marking four years of continuous decline quarter upon quarter.
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