CBI scents a recovery in financial services sector

Oct 5 2009 by Iain Laing, The Journal

THE first rise in business volumes since the credit crunch began has fuelled the CBI's hopes of a recovery in the financial services sector.

The Confederation of British Industries has found that 32% of financial firms said volumes improved in the three months to early September, outstripping the percentage reporting a fall for the first time since 2007.

Its latest survey found respondents saying they are more optimistic about the overall business outlook than three months ago, but adding they remained worried that a lack of demand could hamper business expansion over the coming year.

Ian McCafferty, the CBI’s chief economic adviser, said signs of a brighter outlook were appearing in the sector, after two years of exceptionally tough operating conditions triggered by frozen credit markets.

He said: “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.”