Service sector companies such as travel, leisure and hotels have reported unexpectedly strong demand, according to a survey by the Confederation of British Industry and Grant Thornton. Financial Times. The Times

Consumer service companies reported demand was at a three-year high in the quarter ending in May. A large proportion expect the strong growth to continue in the next three months.

Firms reported raising their prices despite falling employment costs. Companies such as hotels, airlines and hairdressers enjoyed the weakest growth in costs per person since the survey began in 1998.