Financial services firms report slow down

Business confidence among financial services firms rose slightly after falling in the summer for the first time in nearly two years, but business volumes have grown at the slowest rate since Christmas 1997, according to the CBI and PricewaterhouseCoopers. Of financial services firms, 18 percent were more optimistic than three months ago,while 15 percent were less optimistic. Growth in business volumes was well below expectations- it fell to the slowest rate since December 1997.

"The banking sector shows a surprising collapse in confidence and expectations since earlier surveys," said Ian Dilks, partner at PwC. "This survey shows more banks reporting a decline in business than at any time since March 1992. The decline, combined with a sharp downward trend in the volume of business to individuals, suggests that the mortgage boom is at an end.A similar trend exists among building societies where a decline in the volume of business, notably on the personal side, is fuelling a pessimistic outlook."