Member Article

First growth in financial services for two years

After almost two years of falling business volumes financial services firms are now showing the first signs of recovery, according to a new survey.

Business volumes across the sector grew for the first time in two years, though levels of business were still considered to be well ‘below normal’.

Firms are more optimistic about the overall business situation compared with three months ago, but they remain worried that a lack of demand will hamper business expansion in the coming year, according to the latest CBI/PwC Financial Services Survey.

Sarah Green, Regional Director, CBI North East said: “After nearly two years of exceptionally tough operating conditions, signs of a brighter outlook are appearing in the financial services sector.

“Business volumes have increased, for the first time since the onset of the credit crunch, and a fall in running costs helped lift profitability. This is concrete evidence of the gradual path to recovery that firms were anticipating in our June survey of the 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.”

While business with industrial and commercial companies, as well as private individuals, fell slightly, the amount of business with financial institutions and overseas companies rose for the first time since June 2007 and September 2007 respectively.

This was posted in Bdaily's Members' News section by Ruth Mitchell .