Financial services sector upbeat about Q2

The UK’s financial services sector performed slightly better than expected during the past quarter, with businesses expecting further growth in the coming three months.

According to a new report from the Confederation of British Industry (CBI) and PricewaterhouseCoopers, 43 per cent of respondents to the survey saw their volumes rise in the three months to the end of March, compared to the 42 per cent who experienced a fall.

In addition, 48 per cent of firms operating in the sector predict their volumes will climb between now and June, which is the highest percentage since March 2006.

Chief economic adviser at the CBI Ian McCafferty said ’there are signs of better things to come’ in the industry, which includes firms that manage the personal wealth of individuals.

’Financial services companies hope lending will grow across their customer base over the coming quarter, lifting business volumes and helping profitability,’ he remarked.

Earlier in the month, the CBI stated recovery from the recession is likely to be ’sluggish’ during 2010.ADNFCR-2318-ID-19699146-ADNFCR