Confidence of future growth among consumer services firms is at its highest level since September 1999.

The latest CBI/Deloitte & Touche Service Sector quarterly survey shows optimism among consumer service firms was plus 11 per cent for the three months December to February.

This compares to a figure of minus nine in November, and is the highest figure for 18 months.

Optimism among business and professional services was plus 12 during the latest quarter, compared with minus 11 in November.

The figures are calculated by subtracting the number of firms saying they are less optimistic from those who are more optimistic.

Roger Bootle, economic advisor to Deloitte & Touche, said the survey provided "welcome relief" from concerns about the possible impact of the slowdown in the US economy.

He said: "With confidence bouncing and business volumes growing nicely, there is as yet no sign of a sharp slowdown in the UK."

However, he said average selling prices in consumer services rose more slowly than the previous two quarters, a balance of plus 16, against plus 35 in November.

While for business and professional services a higher majority of respondents said prices fell, with a balance of minus eight for the last quarter, compared with minus three the previous quarter.

Sudhir Junankar, the CBI's associate director of economic analysis, said this was not the only difference of opinion between the two sectors.

He said IT investment intentions for the next year were negative among consumer services firms for the first time.

By contrast, the strongest intentions yet were recorded among business and professional services, with three-quarters of respondents citing increasing efficiency as a motive.