Commercial mortgage lending and
property investment from the financial services sector may not improve markedly in the next quarter, new data reveals.
Poor conditions in lending and industrial and commercial companies continued during the last three months, according to the latest Confederation of British industry (CBI)/PricewaterhouseCoopers Financial Services Survey.
This has resulted in only a slight improvement in expectations for the next quarter.
This is despite financial services firms being more confident that financial markets will not deteriorate any further this year.
Commenting on the data, CBI chief economic adviser Ian McCafferty said: "On a more positive note, financial services firms' confidence in the general business situation has continued to increase, profitability improved and a much slower reduction in numbers employed was seen in this survey.
"Job losses are also expected to be minimal in the coming quarter."
It comes after the CBI forecast that UK GDP is unlikely to reach pre-recession levels until the end of 2011.
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