UK firms have seen their profitability fall to a record low despite the recent economic recovery.
Company profitability dropped for an 18th consecutive quarter during the third quarter of 2003, even though Gross Domestic Product (GDP) increased by 2.2 per cent over the year.
The decline was seen not only in the manufacturing sector but also in most service industries including the media, information technology and telecoms.
Firms in the South-East experienced the sharpest fall in profitability between the second and third quarters of 2003.
According to a survey by business solutions group Experian, profitability has now fallen by two-thirds since early 1999.
Some nine sectors remained at their lowest since Experian started compiling the study in the early 1990s. They included chemicals, electricals, household goods and leisure and hotels.
The only sector to significantly buck the trend was building and construction, which has benefited from the recent building boom.
Tuesday June 15, 2004
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