Investment management set for sharp contraction - CBI

The investment management sector is expected to suffer a "sharp contraction" in the next quarter, says the latest CBI survey.

The latest CBI PwC survey shows although profitability in the sector grew at the fastest rate since June 2006 during the last three months - beating expectations of a marginal contraction - a sharp contraction is expected over the next three months. The anticipated slump will come as income values are predicted to fall and costs rise. During the last period, business volumes increased only marginally, falling short of expectations after four consecutive increases. Optimism is broadly unchanged, says the CBI. "Confidence among security traders is falling as volumes of business and l...