MNI DATA ANALYSIS: UK Service Firms Q2 Sales, Orders Unch- BCC

--BCC: UK Services Firms Q3 Domestic Sales +19; Unchanged Vs Q2 

By David Robinson

     LONDON (MNI) - Growth in UK service sector activity held steady in the

third quarter compared to the second, a British Chambers of Commerce survey

published Friday suggested.

     The headline service sector balances were unchanged, or barely changed,

from those in the second quarter. A net 19% of service sector firms reported a

rise in domestic sales in Q3, matching the Q2 outturn, and a net 15% reported a

rise in orders, again equalling the Q2 result.

     In the official data, service sector output rose by 0.4% on the quarter in

Q2, with overall GDP growth soft by historic standards at 0.3%. The BCC data are

consistent with a similar pace of growth in Q2.

     Adam Marshall, Director General of the BCC, said "the uninspiring results

we see ... reflect the fact that political uncertainty, currency fluctuations

and the vagaries of the Brexit process are continuing to weigh on business

growth prospects."

     The manufacturing sector saw sales growth accelerate a touch from Q2, with

the domestic sales balance rising to 24% from 20% in Q2 and a net 29% of

manufacturers reported a rise in export sales, up from a net 27% in Q2.

     Inflation also seems to be growing at steady pace, with a net 28% of

service firms expecting to raise prices over the next three months, unchanged

from the second quarter.

     Firms are continuing to hire despite sluggish output growth, with

recruitment difficulties intensifying.

     In all 52% of service sector firm in Q3 said that they were attempting to

recruit, up from 49% in Q2, with 67% reporting recruitment difficulties, the

highest proportion since Q1.

--MNI London Bureau; tel: +44 203-586-2223; email: david.robinson@marketnews.com

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

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