Despite recent figures revealing a fall in unemployment levels, the latest quarterly survey conducted by the Confederation of British Industry (CBI) found a decline in service sector activity over the last three months.
According to the CBI's report, the business and professional service sector - which includes accountancy, legal and marketing firms - fell significantly short of predictions that had forecast strong volumes of growth.
Indeed, with the sector witnessing its biggest fall in productivity since November 2011, the survey attributes the decline to businesses cutting prices and employment costs rising.
What's more, companies in consumer services such as hotels, bars and the travel industry saw activity drop off too, and profitability fell as increasing prices were outpaced by growth in employee costs.
But the CBI's survey did offer some cause for optimism, with consumer services predicting an increase in profitability and the number of firms in the sector that are planning to expand as its highest level for three years.
"Business conditions failed to improve as expected for business and professional firms, while sharply falling prices bore down on profits," said Anna Leach, CBI head of economic analysis.
"Consumer services saw a tougher end to the year than expected, as the rate of decline in business volumes accelerated unexpectedly.
"Despite the disappointing quarter, optimism remained stable and the outlook is brighter for the months ahead. Business volumes in both sectors are expected to grow and employment to pick up."
With employment forecast to improve and market sentiment appearing positive, it seems that the service sector will perform more promisingly in the coming months.
And if companies do place a fresh onus on hiring new staff, it's important that they have access to adequate office space in order to support a growing workforce.
Whether that means renting or investing in vacant commercial properties, businesses will have to ensure that they're ready to expand by securing the appropriate assets as they look to play a part in an economic recovery.