Confidence in UK services sector falls amid rising costs and weak demand

UK business confidence is low despite the boost to activity that usually follows the summer as people return from holiday. Photograph: Victoria Jones/PA

Business confidence plunged this month across the UK’s services sector as mounting cost pressures and weak demand hit profits and undermined the outlook for the rest of the year.

The CBI’s latest service sector poll found that a majority of companies were gloomy about their prospects and discounted the acceleration in activity that usually follows the return to work after the summer break.