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CBI: Business conditions are stabilising

New research from the Confederation of British Industry (CBI) reveals that business conditions are starting to show some signs of stabilising.

The quarterly May CBI Service Sector Survey indicated that the fall in business volume and value continued in customer services, but there was a further slackening in the pace of contraction.

Business and professional services volumes dropped more moderately, but still at a faster rate than was expected.

General secretary of the Trades Union Congress Brendan Barber recently claimed that the government's austerity agenda is holding businesses back.

However, chief economic adviser for the CBI Ian McCafferty suggested that the eurozone crisis was a major source of uncertainty, adding that stabilisation in the UK is being achieved despite this.

"Business and professional services firms saw similar rates of decline in business volumes this quarter as last, but are also predicting a return to growth next quarter for the first time in a year," the expert commented.ADNFCR-1898-ID-801372460-ADNFCR

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