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Highlights
- Optimism in the UK services industry is declining amid the spiralling cost-of-living crisis, as per the latest CBI survey.
- The survey results were in line with the latest S&P Global PMI figures, which indicated that the UK business activity has significantly slowed down in May, creating fears of recession.
UK’s service industry, which has dominated the country’s economy, is slowly losing confidence. According to the results of a survey conducted by the Confederation of British Industry (CBI), the optimism in the services industry is declining, and consumer-facing companies are losing confidence amid the spiralling cost-of-living crisis. The survey covered 174 services companies from 28 April to 13 May.
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Consumer services companies say that they haven’t been witnessing much growth, and they expect their growth to decline in the next quarter. Business and professional services companies did experience growth, but they expect it to halt soon.
The survey results were in line with the latest S&P Global PMI figures, which indicated that the UK business activity has significantly slowed down in May, creating fears of recession. Despite falling consumer confidence with inflation hitting record-high levels, surveys related to UK business activity had given strong results until recently.
Amid falling consumer confidence, investors can keep an eye on the stocks of these 3 service providers offering decent returns.
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John Menzies plc (LON: MNZS)
The shares of the leading provider of airport services, John Menzies plc, were trading at GBX 597.00 at around 9:00 AM (GMT+1) on 26 May 2022. The company has provided its shareholders with a significant return of 91.45% over the last one year as of 26 May 2022. The current market cap of the company stands at £548.80 million.
Capital Limited (LON: CAPD)
The shares of the company offering services to the exploration and mining sectors, Capital Limited, were down by 0.22% at around 9:00 AM (GMT+1) on 26 May 2022, at GBX 92.80. The company has provided its shareholders with a return of 15.37% over the last one year as of 26 May 2022. The current market cap of the company stands at £177.53 million.
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Kin and Carta plc (LON: KCT)
The shares of the digital transformation company offering IT consulting and other related services, Kin and Carta plc, were up by 0.46% at around 9:00 AM (GMT+1) on 26 May 2022, at GBX 219.50. The company has provided its shareholders with a return of 15.53% over the last one year as of 26 May 2022. The current market cap of the company stands at £388.46 million.
