CBI highlights business decline for finance firms

The UK's financial services firms have found that business levels have declined at a significant rate.

Data released by the Confederation of British Industry (CBI) has found that over the final quarter of 2007, business levels within the financial services sector declined at a rate not seen for nearly 17 years.

"After two years of strong growth there has been a clear turnaround within the financial services sector," said Ian McCafferty, chief economic adviser for the CBI, an organisation that operates on a not-for-profit basis.

"The credit squeeze has delivered a sharp shock to business volumes over the past three months and it seems that difficulties are likely to persist for some time yet," he added.

According to the CBI, of a poll of businesses, while ten per cent reported an increase in business volumes, a greater number - 44 per cent - reported a decline.

The CBI has a membership base of approximately 200,000 bodies.