JOB cuts and a slowdown in profit growth hit the UK’s financial services sector during the final quarter of last year, said a report today.
The survey by employers’ body the CBI said the sector saw strong growth in activity for the second quarter running during the final three months of 2010.
But it said the number of people employed in the sector fell at the fastest pace for 17 years, while profitability grew at its slowest rate for 18 months.
Business volumes grew for all sub-sectors of financial services apart from banking where volumes were flat. Life insurers saw a year of growth in 2010 for volumes of business and profitability. Investment managers saw activity grow in the past three months.
For business with private individuals, volumes were higher than three months ago. But business with industrial and commercial companies was flat – while business with financial institutions and overseas customers fell slightly.
In the coming quarter growth in business activity is expected with all the customer groups, except financial institutions.