Growth in the financial services sector has levelled off over the past three months, according to the latest survey by the CBI and PricewaterhouseCoopers.
Business in the sector as a whole has stab ...
Growth in the financial services sector has levelled off over the past three months, according to the latest survey by the CBI and PricewaterhouseCoopers.
Business in the sector as a whole has stabilised at a more buoyant level than at the turn of the year.
Despite falling business levels, the sector's profitability has grown for a second successive quarter. Profitability is now expected to grow over the next three months.
The report claimed that general and life insurers have enjoyed the best rates of growth.
However the survey revealed that firms also expect to make fewer capital investments over the next year.
John Hitchins of PricewaterhouseCoopers said: "Uncertainty remains a key theme for the industry. No one is prepared to predict the timing of a stock market recovery and there is concern that the growth in consumer spending and house prices is coming to an end."
Employment in the sector has also remained buoyant, but it will reduce over the next quarter, the report said. 32% of companies in the sector expect employment to fall.
CBI chief economist Ian McCafferty said: "The outlook remains difficult for financial services firms in both terms of the amount of business they're doing and the income its generating."
