IRMs are “treading water” as they continue to be hit by rising prices, new research suggests.
The CBIA industry activity remained “slow” in the three months to July, with no improvement expected in the next quarter.
Efficacy in business and professional services grew at a faster pace than the previous month, while consumer services activity continued to decline, the CBI said.
According to the survey of 538 companies, companies do not expect any growth in private sector activity in the coming quarter.
Alpesh Paleja, CBI chief economist, said: “While businesses and consumers are plagued by rising prices, private sector activity has stalled.
“With the announcement of a further hike in the energy price cap now just weeks away, consumer-oriented companies will also be bracing for even tighter pressure on household incomes in the coming months.
“Consumer spending will not restart the growth engine this time.
“Stimulating business investment will help fill the void left by households, but incentives need to be bold or they won’t surface.
“As a summer of political drama continues, it is encouraging to see both prime ministerial candidates and the main opposition party putting the economy at the center of political debate.”