LONDON (Reuters) - Britain's services companies are at their most optimistic since at least 1998 but, in a potential hurdle for the economic recovery, they are struggling to find the right staff, a survey showed on Tuesday.
The Confederation of British Industry's quarterly Service Sector Survey showed activity in the sector, which accounts for more than three-quarters of Britain's economy, rose for a fourth straight quarter.
Optimism among firms in both the professional and the consumer services sector rose at the fastest rate since the start of the survey in November 1998.
Katja Hall, a deputy director general at the CBI, said Britain's strengthening economic recovery was encouraging consumer and business-focused services firms to take on more staff and invest in training and information technology.
"But a rising number of firms, particularly in business and professional services, are having problems finding the right staff," she said. "This survey identifies a skills gap as a growing constraint on business expansion in the sector over the year ahead."
Britain is growing faster than any other Group of Seven economy and the Bank of England is watching closely for signs of inflationary pressure coming from the labour market. So far, wages are growing at close to the rate of inflation but are expected to pick up more strongly later this year.
The CBI survey was based on interviews with representatives of 151 firms, the employers' group said.
(Reporting by William Schomberg; Editing by Ruth Pitchford)