THE dominant UK services sector achieved steady growth in the three months to November, and expansion is projected to continue into next year, a survey has shown.

The survey of 191 firms, published today by the Confederation of British Industry, shows growth in business volumes and employment in both the professional and business, and consumer services sectors. Both services sub-sectors anticipated further expansion of business volumes and employment in the coming three months.

This report will likely come as a relief, amid mounting evidence of a slowdown in the UK's unbalanced economic recovery.

It signals that, overall, consumer services firms continued to enjoy growth in profits on the back of higher prices. However, it indicates profits in the business and professional services sub-sector were down marginally in the last three months.

According to the survey, employment in business and professional services, which includes accountancy, legal and marketing firms, increased at its fastest pace for seven years. The number of employees in consumer services, a sub-sector which includes hotels, bars, restaurants, and travel and leisure firms, also increased.

The survey signals a sharp rise in spending by consumer services firms on staff training. It also shows strong spending on information technology by business and professional services firms.

The CBI flagged signs of skills shortages in consumer services, with more firms in this area citing staff shortages as a factor which could limit their ability to grow over the next 12 months.