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Financial services feeling economic recovery

Financial services feeling economic recovery

Category: Economy

Updated: 22/01/2014
First Published: 22/01/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Things have been looking up for the UK economy for a while now with a recovery firmly taking root, and according to a survey from the Confederation of British Industry (CBI) this is starting to feed through to financial services.

Like every aspect of business and commerce this sector has taken a hit over the years, but the latest CBI/PwC Financial Services Survey found that as the broader economic picture improves the financial services arena is benefitting.

Taking a look at the three months to December, results show a definite increase in confidence while optimism grew at its fastest rate since 1989 – 69% of firms said they felt more optimistic, perhaps largely due to the fact that profits were up for the fifth consecutive quarter.

Over half of firms (53%) reported business volumes being up while employment within the sector has also seen good growth, and this is expected to continue with firms expecting even higher levels of employment, business volumes and profits.

Capital spending intentions are positive too with firms putting money back into their businesses, and this is looking to increase over the next 12 months.

Matthew Fell, CBI director for competitive markets, said: "Things are starting to look more 'normal' after five years of volatility.

"All key indicators – optimism, business volumes and profitability – are up. But it's particularly encouraging to see longer term confidence indicators like marketing spend, employment and investment spend also rising strongly."

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