Austerity measures depress confidence of catering sector

06 July 2010 by
Austerity measures depress confidence of catering sector

The recovery in the catering industry is starting to falter as confidence falls in the wake of the Government's austerity measures.

The latest data from the Markit/CIPS purchasing managers' index ]( showed that the service sector, which includes catering, IT, banking and hairdressing, had expanded at its slowest rate for 10 months in June, prompting fears of a double-dip recession.

A monthly snapshot of the services sector showed the largest drop in business expectations in its 14-month history last month. The headline index dropped from 54.4 to 55.4, according to the Guardian.

"It is a shockingly weak result for the proponents of the idea of a V-shaped recovery in the UK. This is the beginning of a W-shaped scenario as the survey clearly shows the recovery momentum has peaked," Lena Komileva, economist at Tullett Prebon told the paper.

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By Neil Gerrard

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