Finance sector news

First growth in UK financial services since credit crunch

7/10/2009
A new survey has found that the last three months has seen financial services firms showing the first signs of recovery following nearly two years of falling business volumes and profitability.

According to the latest CBI/PwC Financial Services Survey, business volumes across the sector grew were, however, still considered to be well 'below normal'. While companies are more optimistic about the overall business climate than they were three months ago, they remain concerned that a lack of demand will hamper expansion in the coming year.

There are still differences between individual industry sectors. Securities traders and investment managers have seen strong volume growth over the past quarter, while banks and building societies expect growth to resume over the next three months. On the other hand life insurers and insurance brokers anticipate further, albeit slower, falls in business volumes.

Ian McCafferty, CBI Chief Economic Adviser, said: "After nearly two years of exceptionally tough operating conditions, signs of a brighter outlook are appearing in the financial services sector. Future demand is still a major concern for financial services firms, however, and further pain will continue to be felt in job losses and lower investment."