Britain's economic slump deepened in the second quarter and business surveys, such as the latest quarterly poll by the Confederation of British Industry (CBI), bode ill for economists' hopes of a modest rebound in the third quarter.
Firms across both the consumer services and business and professional services sub-sectors said that their business volumes and values fell either at a broadly steady or sharper pace than in the previous three months, the CBI reported.
Service providers' confidence slumped to the lowest level since November 2011 and companies expected business to weaken
further in the next three months, the CBI said.
"Conditions in the service sector have not improved as expected this quarter, with firms now more negative about the overall business situation than they were three months ago," said Anna Leach, head of economic analysis at the business lobby.
Businesses had hoped for a boost from the London Olympics, which took place between 27 July and 12 August.