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Service firms have a bad quarter

Hotels, bars and restaurants show worst performance in a year

Growth in the services sector slowed in the three months to August, according to figures published yesterday by bosses’ group CBI.
Consumer services including hotels, bars and restaurants as well as travel and leisure firms experienced their weakest performance in a year.
Meanwhile business and professional services such as accountancy, legal and marketing firms grew at their slowest pace since November.
The services sector represents more than three-quarters of Britain’s output and has headlined coalition claims that the economy is in recovery.
CBI deputy director-general Katja Hall said: “The slowing in the pace of growth and profits in the service sector reflects our view that momentum in the economy will ease in the second half of the year.”
The CBI said that a poll of 215 firms had revealed increased concern about a shortfall of professional or clerical staff which was likely to limit expansion.

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