RTTNews - Wednesday, latest quarterly Service Sector Survey from the Confederation of British Industry revealed that the service sector is still in deep recession, but the fall in activity is starting to slow.

Business volume in consumer services declined over the last three months at the biggest rate since November 2001. However, the sector reported increase in prices and the decline in business values were less marked. At the same time, values in business and professional services dropped faster than volumes due to record deflation in average selling prices.

The survey was conducted between April 29 and May 13 covering 179 service-sector firms.

Ian McCafferty, CBI Chief Economic Adviser said, Firms are a lot less pessimistic than they were three months ago, and although the recession has deepened, business is not expected to decline at the same rate going forward as it has in the past six months. Although the situation is very tough for firms, some tentative grounds for cautious optimism are starting to appear in some areas.

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