Eight out of 10 firms in the UK business services sector are faring no better than they were this time last year, according to independent invoice finance provider Bibby Financial Services’ Business Factors Index.

The index of the sector, which includes recruitment, financial services and property firms, reveals 37% are finding the current trading climate tough, while more than a half (58%) have been forced into rationalising their business and making cuts.

Bibby’s corresponding report from 12 months ago revealed that 89% of businesses from the sector believed they were doing better or about the same as the previous year.