Insurance brokers and fund managers are the only sectors in the financial services industry expecting significant growth in the first quarter of 1999.
Other sectors are heading for a sharp slowdown in business and significant job losses in the first quarter of 1999, according to a survey by the Confederation of British industry and PricewaterhouseCoopers
The survey found that 45 per cent of firms are less optimistic about their business prospects than they were three months ago. Firms' expectations are at their lowest since September 1992.
CBI associate director of economic analysis Sudhir Junankar says: "Looking ahead the picture remains gloomy as financial service firms do not expect to escape the economic slowdown. Over the first quarter of 1999 growth is likely to be much slower and significant job cuts are expected."