Business Services | First Quarter 2014

April 2014 – After outperforming the broader indices in 2013, the SCA Business Services sector suffered a weak Q1 2014, declining by 1.0% compared to an increase of 3.2% for the S&P 500. This market pullback was led by the SCA HR Services sector (down 8.8%), SCA Marketing Services sector (down 2.3%) and SCA IT Consulting sector (down 1.0%). While some of the sector decline can be attributed to a general market correction from the run‐up experienced in 2013, investor concern about slowing U.S. employment growth and small business investment were significant factors, as well. Notwithstanding the sector’s overall performance, most companies in the sector beat 2013 guidance and continue to forecast growth for 2014.

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