UK technology services firms generated rapid growth in the last three months and employee numbers increased, but business and consumer services suffered a difficult period overall, according to the Confederation of British Industry (CBI).

The CBI report said that some professional services sectors, such as telecoms, IT and marketing, saw improved profitability, while management, human resources, legal and property firms deteriorated.

For telecoms and IT, values and volumes of business were prompted by aggressive cuts in selling prices.

IT and telecoms were among the few sectors performing well, said Ian McCafferty, the CBI’s chief economic adviser.

"Services sector firms are concerned about their business prospects, but there are exceptions," he said.

"Travel companies reported healthy demand for holidays in the past three months, marketing firms are going from strength to strength and the telecoms and IT sector has seen a run of strong profitability growth."