Aug. 24--Hopes for a speedy economic recovery were dampened today after research from the CBI showed the UK's dominant service sector was still in recession in the last quarter.

In a new report the business body found service sector activity was "below normal" for the seventh consecutive quarter.

Spending on professional work -- at places like accountancy, law and marketing firms -- rose slightly on the previous quarter.

But the value and volume of orders in the consumer sector -- on hotels, restaurants, travel and leisure -- fell, as Britons cut back on luxuries. That meant overall business levels in the service sector were down, although the CBI said the rate of decline was "much slower" than in the previous three quarters.

Lai Wah Co, head of economic analysis at the CBI, said business conditions "remain difficult for service sector firms", but said the picture is improving.

She added: "We are still seeing consumers rein in spending on services, but no longer at rapid rates.

"Across the service sector, prospects for business expansion and investment are the least gloomy for some time."

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