Survey shows fragile confidence

THE GROWTH in business confidence in the financial services sector has suffered a setback, according to a survey published today.

In a report that reflects the patchy nature of the recovery, the latest quarterly survey by the CBI and the accountants Coopers & Lybrand shows that business confidence strengthened for the seventh successive quarter but at the slowest rate since December 1992.

Almost as many sectors report a decrease in confidence since March as an increase. Venture capitalists are the most optimistic, followed by banks and finance houses. But the 'feelgood' factor has evaporated among fund managers and securities traders, where optimism has fallen sharply.

Business volumes grew in the last quarter but the outlook for jobs remains mixed.