Monday, April 4, 2011

Uk Financial services sector grows for third quarter in a row

Uk Financial services sector grows for third quarter in a row : The UK financial services sector saw activity grow for the third quarter in a row in the three months to March, according to a joint survey by the Confederation of British Industry and PricewaterhouseCoopers.

When asked how their business volumes fared in the three months to March, 33 per cent of the 94 respondents said that volumes rose while 11 per cent said they fell. The resulting balance of +22 per cent was only slightly below the balances of +27 per cent and +28 per cent recorded in the preceding two quarters.

Business volumes grew across the sub-sectors, apart from banking, where volumes were stable, and finance houses, where business levels fell.

Banking reported little change in business levels, reporting normal levels, which comes after three years of well below normal levels of activity.

Unlike banks, building societies’ business grew for the third quarter in succession but continues to be regarded as well below normal levels.

Life insurance business volumes grew for the fifth month in a row, and general insurance business volumes were reported to have grown moderately over the quarter.

CBI chief economic adviser Ian McCafferty says: “A third quarter of strong volume growth shows the financial services recovery is building strength. It is particularly good news that firms consider their level of business to be only slightly below normal, for the first time since the financial crisis began in 2007.

“While business with private individuals has again shown the fastest growth, business with companies also shows some signs of improvement. Firms’ profitability has improved due to higher incomes and another big drop in the value of non-performing loans.”

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