The latest quarterly CBI Service Sector Survey found that over half (54%) professional and business services firms reported that availability of professional staff could limit levels of business in the next 12 months, the highest level reported since February 2008 (+65%). At the same, staff costs are rising, up 6% on the previous quarter.

Both business volumes and values expanded in business and professional services - which includes accountancy, legal and marketing firms – and consumer services such as hotels, bars, restaurants, travel and leisure firms.

Business and professional services reported that levels of business in value terms were significantly above normal - and a survey record high - reflecting the strongest growth in business volumes since 2001.

The survey of 176 firms highlighted a strong performance across the service sector with an expectation for similar results in the next quarter. Both sub-sectors recorded robust rises in profitability - underpinned by the growth in business volumes – and remain optimistic regarding their business situation.

Rain Newton-Smith, CBI director for economics, said: ‘After a weaker start to the year, the UK services sector is now seeing healthy growth across the board with firms becoming more profitable, driven by a surge in business volumes.

‘But difficulties in finding staff with the right skills for firms to grow is a mounting concern, and with recent turbulence in the markets risk management skills are likely to be in demand.’

Business and professional services firms anticipate strong increases in IT investment, mainly to increase efficiency and exploit new technologies.

There is also evidence that recruitment is becoming an issue. The lack of availability of professional staff is limiting business expansion at the same levels as experienced before the financial crisis in 2008.

Firms across the professional services sector reported strong growth in numbers employed, but this is expected to slow in business and professional services in the next few months.

Four in ten business and professional services firms said they were more optimistic than three months ago compared with 8% saying they were less optimistic, giving a balance of +32%.

Nearly half of firms (43%) reported that business volumes were up compared with three months ago, with only 10% saying business was contracting. For some this converted into price rises, with 16% stating that they had increased their selling price, but 9% had actually cut prices over the same period.

Growth in costs per person employed accelerated, with a balance of +36% this quarter comparing with +28% in the previous quarter.

Employee numbers has increased, although the CBI expects this to slow by the start of 2016. on the investment front, firms plan to increase capital expenditure on IT (+39%) over the next year mostly to increase efficiency/exploit new technologies (62%).

54% noting that availability of professional staff could limit levels of business in the next 12 months, the highest since February 2008 (+65%).

The CBI Service Sector Survey was conducted between 29 July and 14 August. 109 business and professional services firms, and 67 consumer services firms replied.