Business - Downturn hits services
The service sector, especially in London and the South-East, is more vulnerable to economic slowdown than thought, according to the latest research from PricewaterhouseCoopers, writes Ben Griffiths.
Service companies were thought to be immune to the slowdown, with manufacturing industries bearing the worst of the situation.
But PwC’s sector vulnerability index, shows the service sector industries has become more sensitive due to a slowdown in growth in the second quarter of the year.
‘The economic downturn is beginning to threaten businesses and employment, not only in the manufacturing heartland of the North and Midlands, but also in service sector industries concentrated in London and the South East,’ said Rosemary Radcliffe, PwC head of economics.
While a number of service sector industries have already been affected, construction companies remain most under threat, with financial and business services, and hotels and restaurants also particularly vulnerable.
Engineering and general manufacturing face considerable risks, whereas telecommunications and food retailing continue to be the least susceptible industries.