British service-sector firms are hiring new staff at the fastest rate in six years and are planning to ramp up investment as the country’s economic recovery gathers momentum, a survey showed on Tuesday.
In the three months to November, a balance of 41 per cent of consumer services firms and 28 per cent of business and professional services companies said their staff numbers increased, the survey by British business lobby CBI showed.
The Bank of England is closely monitoring the health of the labour market and has said it will consider raising its record-low interest rates once unemployment falls to 7 per cent.
The BOE is also keeping a close eye on investment by businesses, which it says is needed to bolster the recovery.
The CBI survey showed service-sector firms planned to boost investment in the coming year. Business and professional services firms’ expectations of business expansion were at the highest level since May 2004.
Both consumer and business-facing service firms finally seem to be feeling the benefit of growing confidence and spending within the UK and globally
The service sector is the driving force of Britain’s economy, accounting for about 75 per cent of economic output.
