Overseas demand boosts UK financial services

03/04/2007  15:36:20

Overseas demand from offshore companies has seen a marked increase in the demand for UK financial services, according to new figures this week.

The Confederation of British Industry (CBI) has released its latest financial survey, which was published in conjunction with professional services firm Pricewaterhouse Coopers discovered in the three months up to March 39 per cent of those questioned said business volumes had grown compared to the four per cent who noted a decrease.

It was revealed that the volume growth was caused by "marked increase in demand from overseas customers" with offshore banking proving popular and that 21 per cent of respondents noted this trend the highest proportion since June 1998.

A net balance of 34 per cent was larger than the predicted 22 per cent balance led firms to believe a possible 33 per cent growth is on the cards in the next three months.

CBI Ian McCafferty, CBI chief economic adviser, said the UK financial services sector would continue to face from "tougher international competition".

He continued: "A need to meet this challenge may explain why the sector is directing more of its investment plans towards providing new services and reaching new customers.

"On balance the sector does not appear to have been unduly troubled by the market wobbles. The outlook for the next quarter is quite robust with further strong growth predicted."

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