Business 'to fall' in financial sector

Business volumes across the financial services sector are likely to fall in the coming months.

This is according to new research from PricewaterhouseCoopers (PwC), which revealed that firms in the market do not expect the increase that was seen in the final quarter of 2009 to continue.

The Big Four firm found that 13 per cent of businesses such as private banking institutions are expecting activity to fall in the opening three months of 2010, the highest percentage recorded since December 2008.

John Hitchins of PwC noted that ’an uncertain regulatory future’ is hampering the recovery of the financial services market.

’Activity and revenues are expected to decline over the coming quarter,’ he added, however Ian McCafferty of the Confederation of British Industry noted that job losses between January and March are likely to be ’minimal’.

Many firms may instead choose to relocate their employees outside of the UK, with Michael Baxter of Investment and Business News recently warning that some banks are looking to move away from London to a more tax-friendly location.ADNFCR-2318-ID-19551102-ADNFCR