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Service sector slow down could hit the salon industry
Date Added: 2010-07-08
New figures suggest that the UK service sector is slowing down, hitting industries such as the hair and beauty market.
The Markit/Chartered Institute of Purchasing & Supply services PMI activity index fell for the third time in four months to 54.4 in June from 55.4.
Although figures also show that the UK services sector grew, it grew at its slowest rate for 10 months, a further sign that the recovery is faltering.
Many people in the industry believe that the recent budget, announced on 22nd June has had an adverse effect on the service sector as it proposed spending cuts and VAT rises.
However, other industry figures see the hair and beauty industry as particularly resilient.
Legal expert, Julian Sampson said: "The Index, as with all statistics, is subject to interpretation. The Deloitte report from 2008 still, in my view, remains a strong indicator that the hair industry is more resilient than most to these indicators. Whilst it is certainly true that, with the new coalition measures, hairdressing will be affected, I genuinely believe that there is both an entrepreneurial spirit amongst many salon owners and I combine this with the relatively low consumer cost for a luxury spend at a salon. This latter factor shouldn't be underestimated as the consumer looks for value for money but also to retain certain treats."
