Building societies saw their volume of business rise at the fastest rate since December 1996 according to the most recent quarterly financial services survey from PricewaterhouseCoopers and the Confederation of British Industry.
This was in sharp contrast to banks, life offices and fund managers all who saw their levels of business decline.
The survey also reports life offices suffered from declining overall profitability as they attempted to deal with changes forced upon them by the 1 per cent world.
Both building societies and fund managers are more optimistic about their sectors while banks are slightly less so and life offices are comparatively rather pessimistic about the quarter ahead.
CBI associate director of economic analysis Sudhir Junankar says: “Business confidence has levelled off after the downturn in the last survey, while the pause in the growth of business volumes is not expected to continue. But financial services companies seem less confident about longer term business prospects, with concerns about likely demand conditions at their highest levels for almost three years.”