Cincinnati-based staffing firm CBS Personnel Holdings Inc's third-quarter revenue fell 8.4% to $265.6 million, according to a 10-Q filling with the U.S. Securities and Exchange Commission by its parent company, Compass Diversified Holdings (NASD: CODI).

Demand for staffing services fell, primarily in clerical and light industrial, because of the weak economy, according to the filing. It said the trend is expected to continue through the year. Hurricanes Ike and Gustav also hurt operations by $800,000 as clients put work on hold.

CBS' third-quarter gross margin fell to 16.7% from 17.8%. The decrease came primarily from competitive pressures brought by tougher market conditions and fewer permanent placements, according to the filing.

The revenue and margin numbers for CBS include the results of its acquisition of Staffmark on a pro forma basis. CBS acquired Staffmark on Jan. 21 for $128.6 million excluding transaction fees and closing costs.