REPEAT: MNI: UK Services Q4 Sales Orders Little Change Q3: BCC

-UK Services Domestic Sales Domestic Sales +20 Vs +19 Q3, Domestic Orders +14 Vs

+15

By David Robinson

     LONDON (MNI) - UK services domestic sales and orders were little changed in

the fourth quarter compared to the third while manufacturing firms domestic and

export orders and sales decline, a British Chambers of Commerce (BCC) survey

found.

     The BCC survey found that service sector skill shortages hit record highs

in the fourth quarter and intensified in the manufacturing sector. The headline

numbers suggest that while the manufacturing and services sector expanded in the

fourth quarter, the overall pace of growth may have been similar or less than in

the third quarter and both are struggling to fill job vacancies.

     In the services sector the balance of firms reporting higher export sales

dropped in Q4 to +12 from +14 in Q3 and the balance reporting higher export

orders fell to +7 from +8. The service sector domestic sales balance rose to +20

from +19 and the orders balance fell to +14 from +15.

     In the manufacturing sector the Q4 export sales balance fell to +25 from

+29 in Q3, the lowest reading since Q4 2016, while the domestic sales balance

fell to +23 from +24 and the order's balance to +18 from +21.

     The results on recruitment difficulties were striking. The proportion of

services sector business looking to hire fell to 50% in Q4 from 52% in Q3, but

71% of those hiring experienced difficulties, up from 67% in Q3 and the highest

in the history of the BCC survey.

     The recruitment consultants survey from IHS Markit/REC, out Tuesday, also

highlighted deep recruitment difficulties. Its December staff availability index

fell to 35.2 from 36.5 in November, and in that survey any reading below 50

indicates a contraction.

     "Labour and skills shortages are set to be the biggest potential drag

anchor on business in 2018," Adam Marshall, Director General of the British

Chambers of Commerce, said.

     The survey is in line with Bank of England expectations that fourth quarter

growth may even be a little softer than the 0.4% quarterly growth seen in Q3 but

the official activity data out this week will shed fresh light on this.

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

[TOPICS: MABDS$,M$B$$$,M$E$$$]