In Q1 2016 the balance of service firms reporting improved domestic sales fell to their lowest level in nearly three years.
UK economic growth softened in the first quarter of the year and Westminster should be worried, the British Chamber of Commerce has indicated with the release of its quarterly economic survey.
In Q1 2016 the balance of service firms reporting improved domestic sales fell to their lowest level in nearly three years.
Dr Adam Marshall, acting director general of the British Chambers of Commerce, said: “While the picture is static overall, there are clear indications that economic growth is continuing to soften.
“From sales and orders to confidence and investment intentions, many of the business indicators we track are at a low ebb.
“The softening environment should be a wake-up call for Westminster. Further action is likely to be needed to support business confidence, encourage trade and underpin investment in the months ahead."
The results showed that fewer manufacturing firms increased their workforce in the past three months or are looking to do so in the next quarter.
In the services sector the percentage of companies struggling to recruit has risen to 68%, an 18-year high, however more firms anticipate expanding their workforce in the next three months.
Confidence in turnover and profitability for both services and manufacturing is low historically.
