THE services sector will continue its robust growth into early next year, a report has predicted.

The CBI Service Sector Survey predicts the industry will build on the steady expansion seen in the three months to November.

It said profits continued to rise, aided by higher prices, with employment increasing at its fastest pace for seven years in the business and professional sector, which includes accountancy, legal and marketing firms.

The number of staff in consumer services, such as hotels, bars, restaurants, travel and leisure firms, also increased, with spending on staff training rising as skills shortages take hold.

Rain Newton-Smith, CBI director for economics, said: “Growth across the services sector is expected to continue into the New Year, and it’s good to see investment spending in IT at near record levels.

“But skills shortages are starting to bite, putting more of a break on investment and future growth in consumer services.

“Therefore the spending rise in training in the sector is particularly encouraging.”