04-09-2007
Interest rates affect consumer business sector
Recent rises in interest rates are impacting upon the UK's consumer sales sector, it has been claimed.
According to comments by the Confederation of British Industry (CBI), retail sales have fallen over the last three months in areas of the consumer services sector that include personal care and leisure.
"Costs are expected to continue growing at a rapid rate, with less scope for firms to raise prices, which will inevitably put profit margins under greater strain," said Martin McAfferty, an economic adviser for the CBI.
"Consumer services firms don't expect to expand their businesses in the coming year," he added.
However, data from the Engineering Employers Federation (EEF) has found the UK's manufacturing sectoring to be faring far better.
Professional business services were also reported to be operating in more favourable conditions by the CBI.
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