LONDON, Dec 1 (Reuters) - Optimism in Britain's services sector declined at the fastest pace in three years in the three months to November, hurt by ongoing cost pressures that have eroded profits,
UK Services Sector Optimism Declines Amid Cost Challenges
LONDON, Dec 1 (Reuters) - Optimism in Britain's services sector declined at the fastest pace in three years in the three months to November, hurt by ongoing cost pressures that have eroded profits, the Confederation of British Industry said on Monday.
Finance minister Rachel Reeves' annual budget on November 26 - which set out 26 billion pounds ($34 billion)in tax rises - was unlikely to spark a rebound in morale, the CBI said.
"Last week's Budget will add further costs to businesses, while also hampering business investment and profitability, notably with the addition of national insurance contributions to salary sacrifice pension contributions and failure to address punitive business energy costs," CBI official Charlotte Dendy said.
Separate figures from the Institute of Directors, also released on Monday, showed business sentiment had edged up only marginally after the budget and was still near record-low levels.
* CBI services optimism falls to -50 in the three months toNovember from -29 in August, lowest in three years * CBI services volume falls to -38 in three months toNovember from -30 in August * CBI survey based on 398 firms surveyed between October 28and November 13 * IoD survey shows post-budget sentiment at -72 versus -73in November before budget * IoD survey conducted from November 14-26, two thirds ofrespondents employ fewer than 50 people($1 = 0.7551 pounds)
(Reporting by David Milliken, editing by Andy Bruce)
