Financial services sees rise in optimism and job creation
THE financial services sector is starting to share in the economic recovery with job creation and confidence improving, according to a survey.
Data produced by CBI and advisory firm PwC for the three months to December, shows optimism rising at its fastest rate since the survey began in 1989, as profitability rose for the fifth consecutive quarter.
Business volume growth was strong across most customer categories, with a pick-up in business with industrial and commercial companies.
The CBI/PwC Financial Services Survey also shows that employment grew at its fastest pace since 2007 and expected employment growth for the first quarter of 2014 is the strongest since the survey began.
CBI and PwC estimate that financial services jobs increased by 10,000 in the fourth quarter of 2013 and expect a further rise of 15,000 in the first quarter of 2014. This would take total employment in the sector to 1.16m in Q1 2014 – still 52,000 lower than in the fourth quarter 2008.
Firms’ capital spending intentions for the next 12 months are positive across all categories for the first time since the financial crisis, according to the report.
Iwan Griffiths, PwC’s head of financial services for the North, and Manchester office head said: “In the North West, as the largest region outside of London for financial services, we need to maintain this momentum.
“Banking sentiment continues to improve strongly, mirroring the UK economic rebound. We hope that as trust is earned and rebuilt over time, banks will increasingly be recognised positively for their role in society and their contribution to the UK economy.”
