CBI/PwC Financial Services Survey Q4 2011
Financial services sector growth increases, but caution remains
This has been a strong quarter for the financial services sector, with increases in sales volumes and profits showing that the sector’s recovery is on track- Ian McCafferty
Restrained investment plans and falling employment
The volume of business in UK financial services grew for the seventh quarter running and at the fastest pace since June 2007, in the three months to December.
The level of business was also seen as being normal, after being regarded as below normal since September 2007.
In the next three months firms expect business to continue growing, albeit at a slightly slower pace. However this positive picture is tempered by a fall in sentiment and employment levels in this quarter. Firms also say that they plan to invest less over the coming year.
Ian McCafferty, CBI Chief Economic Adviser, said:
“This has been a strong quarter for the financial services sector, with increases in sales volumes and profits showing that the sector’s recovery is on track.
“But firms are less optimistic, employment is down and investment intentions for this year are weaker, as concerns about the global recovery and ongoing troubles in the Eurozone create uncertainty.
“Nevertheless companies are expecting business volumes and profits to continue to grow, albeit more slowly, in the next three months.”