"This is an encouraging quarter. Firms are expecting positive momentum to carry into the next three months, alongside a strong recovery in business volumes, which will boost profits further."
- Stephen Gifford, director of economics at the CBI
The latest growth projections are showing the U.K. is poised to become one of the fastest growing economies in the world, and together with upbeat fundamental data the economy is likely to accelerate even further. On the back of this news optimism in the nation's financial industry rocketed to the highest in 17 years in the third quarter, as insurers, lenders and brokers step up on hiring at the fastest rate in six years. According to a survey conducted by the CBI and PricewaterhouseCoopers LLP, a net 53% of respondents are optimistic about their business in the three months through September, a level which is 23% higher than in the preceding quarter. Meanwhile, this is the highest reading since 1996. At the same time, the number of respondents who have hired staff surged by a net 24%- the biggest since Q3 2007. Mark Carney has linked his forward guidance to the situation in the labour market, saying the Bank of England will not raise interest rates until the jobless rate hits 7%, which is not expected to happen until late 2016. Nonetheless, employment recorded the fastest increase in six years, and economy's ability to create jobs is suggesting the unemployment rate can drop to its threshold earlier than expected. Financial industry alone created 10,000 jobs during the third quarter, pushing employment by a further 14% or 2,000 positions in the next quarter. This would lead to the total number of employed people in financial services by the end of the year to 1.14 million.
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