While only one in five business sector firms think the current market is tough, trading conditions have declined, according to the latest Bibby Financial Services Business Factors Index.

The index, which includes recruitment firms, shows that most firms (56%) anticipate that recovery won’t take place for at least a year – up from 41% in the Q3 Index, while 19% forecast a recovery by the spring of 2010.

Most respondents (69%) said the recovery of the services sector will be in line with that of other sectors, while, 12% reported that their business is thriving and that they have actually benefited from the recession.

Edward Winterton, recruitment finance specialist at Bibby Financial Services, says: “With fluctuating unemployment figures, constant legislation and red tape affecting the sector, it is no surprise that in the midst of the economic turmoil of the last two years, the UK’s business services industry is suffering.

“The optimism shown by our study compared to Q3 2009 is all well and good, but it is important for these firms to ensure they are prepared for growth and can make investments in their business where needed. It is this further access to finance which is so desperately needed for these businesses to move forward.”