UK lawyers, accountants see record falls in profit

TRYING TIMES: Members of the English legal profession have seen their income plummet. (Getty Images)

Jobs, profits and trade at British accountancy, law and recruitment firms declined at record rates in the last three months and are expected to fall faster in the next three as economic woes worsen, a study published on Monday showed.

Business and professional services firms experienced the steepest declines in the volume and value of their business, profitability and staff numbers in the three months to November since business lobby group the CBI launched the quarterly service sector survey in 1998.

Profits at consumer services companies such as hotels, bars, restaurants and travel and leisure firms fell sharply for the third quarter in a row, according to the poll of 195 companies.

The number of staff employed by consumer services companies increased slightly for the first time in a year during the period, though the firms foresee larger job losses in the next quarter, it said.

"So far, job losses have been relatively small across the whole of the service sector, but with firms predicting faster falls in volumes, value and profitability in the next quarter, we can expect to see significant job losses in the coming months," CBI Chief Economic Adviser Ian McCafferty said.

A record number of consumer service companies cited the cost of finance as likely to limit capital spending in the next year.

"With a record number of consumer service companies worried about the cost of credit, we need to see lending conditions improve as a matter of urgency," McCafferty said. (Reuters)

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