Twin cash blow

Jan 12 2009 by Henryk Zientek, Huddersfield Daily Examiner

INCOME and profitability levels in the UK financial services sector fell at record rates as the recession deepens and the credit crunch continues to bite, a survey revealed today.

In a clear sign that tightened credit markets are hitting the wider economy the amount of business conducted with manufacturers, retailers and other commercial firms also shrank at a record rate, while job losses mounted and investment plans were cut.

The survey by the CBI and PricewaterhouseCoopers found that business volumes fell for 59% of firms and rose for just 17%.