Business services may drive economic growth

RAPID growth in the business services sector offers hope for the UK’s economic recovery, the Centre for Economics and Business Research (Cebr) argued yesterday – but the think-tank also warned a Eurozone recession could cost the UK 70,000 jobs in the industry.

Business outsourcing is forecast to help IT services to grow by 13.6 per cent by 2016, the Cebr said. Management consultancy may grow by 19.1 per cent, and legal and accounting services could see turnover rise by 10.6 per cent.

However , a Eurozone meltdown could stop this recovery in its tracks, cutting spending by 1.6 per cent and destroying 70,000 jobs, the think-tank claimed.

“Demand for business services is expected to grow healthily as UK retailers and manufacturers in particular, look to streamline their business models in today’s tough climate,” said Cebr economist Rob Harbron. “However, a recession in the Eurozone is not good for UK exporters nor the business service firms which rely on their success.”