CBI Service Sector Survey

Data Services

Source: CBI Economics
Source Link: https://www.cbi.org.uk/
Frequency: Monthly
Next Release(s): April 29th, 2026 4:30 AM

Latest Updates

The survey based on the responses of 351 services firms found that:

Business & Professional Services
- Optimism about the general business situation was broadly unchanged in the three months to February, marking the end of five consecutive quarters of deteriorating confidence (-3% from -50% in November).
- Volume of business continued to decline in the quarter to February, but at a slower pace than in the quarter to January (-8% from -33% in January) and at the slowest pace since November 2024. Volumes are expected to grow slightly in the quarter ahead (+4%), the most positive expectations since October 2024.
- Growth in costs per person employed remained elevated in the three months to February. Although growth has slowed compared to the three months to November (+43% from +58% in November), it remained above the long-run average (+31%). In the quarter ahead, cost growth is expected to accelerate and remain elevated (+54%).
- Profitability declined (-28%) for the seventeenth consecutive quarter, albeit at the slowest pace since Q3 2024 (-4%). Overall, profitability is expected to continue falling in the quarter ahead but at a slightly slower pace (-24%).
- Average selling prices grew gradually in the three months to February (+6% from 0% in November), and growth is expected to accelerate in the next quarter (+19%).
- Employment continued contracting in the three months to February, albeit at a slower pace than in the three months to January (-15% from -26% in January) and at the slowest pace since May 2025 (-2%). Headcount is expected to fall at a broadly unchanged pace in the quarter to come (-14%).
- Uncertainty about demand was the most cited factor limiting capital expenditure (cited by 55% of respondents). This was followed by inadequate net returns (33%), a shortage of internal finance (23%), and the cost of finance (21%).
- Firms anticipate cutbacks in investment into both land & buildings (-9% from -24% in November) and vehicles, plant & machinery (-17% from -23% in November). Meanwhile, IT investment is expected to pick up (+17% from -5% in November), the most positive expectations in a year.
Consumer Services
- General optimism continued to deteriorate sharply for the eleventh consecutive quarter, and at a broadly unchanged pace compared to the quarter to November (-45% from -47% in November).
- Business volumes declined further in the three months to February, albeit at a slower pace than in the three months to January (-37% from -50% in January). This extends a period of flat or falling volumes that began in March 2022. In the next three months, volumes are expected to continue declining at a broadly unchanged pace (-35%).
- Total costs per person employed continued rising in the quarter to February, but at a slower pace than in the quarter to November (+46% from +66% in November). Cost growth remains above the long-run average (+40%), and expectations are for cost pressures to rise again in the next three months (+60%).
- Overall profitability fell again sharply in the quarter to February (-49% from -49% in November), at the joint fastest pace since May 2023. Profitability is expected to continue declining in the quarter ahead, and at an unchanged pace (-49%).
- Average selling price growth picked up in the three months to February, after being broadly flat in the three months to November (+9% from +1% in November). This is the nineteenth consecutive quarter of flat or growing selling prices. In the three months to come, selling prices are expected to grow further and at a faster pace (+28%).
- Headcount continued to fall for the twenty-first consecutive month, albeit at a slower pace than in January (-32% from -39% in January). In the three months to May, employment is expected to continue declining sharply (-36%).
- Uncertainty about demand remained the most cited factor limiting investment (cited by 58% of respondents). This was followed by inadequate net returns (43%) and a shortage of internal finance (28%).
- Firms are expecting to cut back capital expenditure in all investment categories: land & buildings (-16% from -32% in November), vehicles, plant & machinery (-31% from -29% in November), and IT (-7% from -1% in November).
Source
Key findings from our monthly Services Sector Survey showed:
- Business volumes in the services sector fell in the three months to January (-37%), at a broadly similar pace to December.
- Both business & professional services (-33%) and consumer services (-50%) volumes fell heavily through the quarter.
- Hiring intentions within the services sector remained negative (-16%), extending a run of weakness that began in late 2024. Business & professional services companies expect headcount to fall slightly over the next three months (-8%), while consumer services firms expect a more significant fall in numbers employed (-29%).
- Selling price inflation expectations in the services sector accelerated, for the second consecutive rolling-quarter (+26%, from +15% in December, and +7% in November). This reflects a pickup in expectations for business & professional services firms (+27%), whereas consumer services selling price expectations were broadly unchanged (+24%).
Source
Key findings from our monthly Services Sector Survey showed:
- Business volumes in the services sector fell in the three months to December (-40%), at a broadly similar pace as in the three months to November.
- Both business & professional services (-34%) and consumer services (-40%) volumes fell heavily through the quarter.
- Hiring intentions within the services sector remain weak (-34%), now at their lowest since July 2020. Business & professional services companies expect headcount to fall over the next three months (-24%), while consumer services firms expect a sharp fall in numbers employed (-51%)
- Selling price inflation expectations in the services sector accelerated in December (+15%, from +7% in November). This reflects a pick up in expectations for both business & professional services firms (+12%) and consumer services (+26%).
Source
“Our latest survey reveals that the services sector is still under significant pressure. Business sentiment and activity have continued to fall, while rising costs are outstripping price growth, continuing to squeeze margins. As a result, profitability has dropped sharply once again. Looking ahead, businesses expect little near-term relief, with uncertainty about demand and persistent cost pressures set to constrain future hiring and investment plans.

“Last week’s Budget will add further costs to businesses, while also hampering business investment and profitability, notably with the addition of NICs to salary sacrifice pension contributions and failure to address punitive business energy costs. The government must now leverage enterprise expertise to unlock economic growth. This starts by applying the effective model of compromise and partnership achieved on the Employment Rights Bill, by collaborating directly with business to boost growth.”

The survey based on the responses of 398 services firms found that:

Business & professional services
- Optimism about the general business situation deteriorated for the fifth consecutive quarter and at the fastest pace in three years (-50%, from -29% in August).
- Business volumes declined at a quicker pace in the quarter to November (-38%, from -34% in the quarter to October). Volumes are expected to decline again over the quarter ahead, albeit at a slower rate (-23%).
- Growth in total costs per person employed remained elevated in the quarter to November (+58%, from +62% in August; and ahead of the long run average of +31%). Cost growth is expected to remain elevated in the next quarter (+56%).
- Profitability dropped (-44%) for the sixteenth consecutive quarter and at the fastest pace since August 2020 (-46%). Overall profitability is expected to deteriorate again over the next quarter (-35%) but at a slower pace.
- Average selling prices were flat in the three months to November (0%, from +4% in August). Firms expect selling prices to return to growth next quarter (+4%).
- Headcount fell amongst business & professional services firms for the sixth month in a row (-21%, from -22% in October). It is set to fall at the same pace next quarter (-21%).
- Uncertainty about demand was the most cited factor limiting investment (cited by 68% of respondents). This was followed by those citing inadequate net returns (35%) and a shortage of internal finance (21%).
- Firms anticipate cutbacks in all investment categories: land & buildings (-24% from -20% in August), vehicles, plant & machinery (-23% from -22% in August) and IT (-5% from -2% in August).
Consumer Services
- Optimism amongst consumer services firms deteriorated in the quarter to November, for the ninth consecutive quarter (-47%, from -34% in August).
- Business volumes declined in the quarter to November (-40%), extending a period of flat or falling volumes that began in March 2022. Firms expect volumes to fall at the same pace in the three months to February 2026 (-40%).
- Growth in total costs per person employed eased slightly in the quarter to November, however growth still remained well above the long-run average (+66%, from +70% in August; long-run average of 40%). Costs are expected to grow at a similar pace next quarter (+68%).
- Overall profitability deteriorated for the sixteenth quarter running (-49%, from -36% in August) and at the fastest pace since May 2023. Profitability is expected to decline at a similar pace in the next three months (-52%).
- Average selling prices were broadly unchanged in the quarter to November (+1% from +20%). Selling prices are set to grow again in the three months to February 2026 (+17%).
- Headcount fell more sharply amongst consumer services firms in the three months to November (-39%, from -28% in October) for the eighteenth consecutive month. Numbers employed are expected to drop again, at a similar pace next quarter (-37%).
- Uncertainty about demand was the most cited factor limiting investment (cited by 61% of respondents). This was followed by those citing shortage of internal finance (43%), inadequate net return (33%) and cost of finance (30%).
- Firms anticipate cutbacks in investment in both land & buildings (-32% from -26% in August) and vehicles, plant & machinery (-29% from -17% in August). However, investment in IT is expected to be unchanged (-1% from +3% in August).
Source
Key findings from our monthly Services Sector Survey showed:
- Business volumes in the services sector fell in the three months to October (-35%), at the same pace as in the three months to September.
- Both business & professional services (-34%) and consumer services (-40%) volumes fell heavily through the quarter.
- Hiring intentions within the services sector remain weak. Business & professional services expect headcount to fall modestly over the next three months (-11%), while consumer services companies expect a sharp fall in numbers employed (-33%)
- Selling price expectations in the services sector eased to their long-run average in October (+7%, from +14% in September). Inflation expectations have moderated for both business & professional services firms (+5%) and consumer services (+18%)
Source
Key findings from our monthly Services Sector Survey showed:
- Business volumes in the services sector fell in the three months to September (-35%), at a faster pace than in the quarter to August. The latest data marked eleven consecutive rolling quarters of decline.
- Both business & professional services (-35%) and consumer services (-34%) volumes fell through the quarter.
- Hiring intentions within the services sector remain weak. Business & professional services expect headcount to fall slightly over the next three months (-5%), while consumer services companies expect a sharp fall in numbers employed (-39%).
- Selling price expectations in the services sector have accelerated relative to August and stand above the long-run average (+14%, from +9% in August; long-run average +7%). Inflation expectations remain modest for business & professional services firms (+10%) but have picked up for consumer services (+27%).
Source
UK services sector confidence and activity remained weak in the three months to August 2025, though rates of decline slowed compared with earlier in the year.
- Business & professional services optimism fell for a fourth straight quarter (-29%), with business volumes down to a net balance of -30% (from -37% prior), while profitability deteriorated sharply (-42%).
- Consumer services optimism weakened for an eighth consecutive quarter (-34%), with business volumes down to a net balance of -26% and profitability contracting for the 15th straight quarter (-36%).
- Cost pressures stayed high: business & professional services reported a positive net balance of +62% in costs per person (vs +60% in May), while consumer services firms recorded +70% (well above the long-run +40%).
- Selling price inflation eased notably, with business & professional services at a net balance of +4% (vs +26% in May) and consumer services at +20% (vs +32%).
- Employment continued to decline, though at a slower pace: headcount fell to a net balance of -16% in business & professional services and -36% in consumer services, with further but smaller declines expected next quarter.
Source
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

CBI Service Sector Survey

Latest Updates

Business & Professional Services

Consumer Services