According to a new survey from the CBI IT services firms are already feeling the credit crunch, with profitability staying flat for business to business companies.

The CBI's Services Sector survey, released this Tuesday, found that firms selling professional services to businesses, it uses examples including IT and recruitment firms, saw business volume grow, but at a much lower rate than last year. The average selling price for services, traditionally rather profitable say the CBI, was 'flat', but firms offering IT, marketing and telecoms fared slightly better than others.

Ian McCafferty, the CBI’s Chief Economic Adviser said, "Services sector firms are concerned about their business prospects..

"There are some exceptions though. Marketing firms are going from strength to strength and the telecoms & IT sector has seen a run of strong profitability growth."