More jobs are set to go in the financial services sector .
The CBI stated a return to growth had been achieved only by tough cost control, but over the next three months jobs are "set to be shed at their fastest rate for two years".
It said a survey found "investment intentions were depressed, spending on land and buildings was not expected to grow, and expected purchases of vehicles, plant and machnery had been sharply scaled back".
Sectors most closely linked to a resurgent stockmarket did best, while building societies and life insurance recorded the biggest falls.
The fastest rate of job cuts is expected at banks and life assurance companies.
One Colchester fund manager acknowledged that business was "good" and attributed it to the continuing growth in the stockmarket.
He said: "The slow but steady growth in the market has seen a return by investors who had stayed away during its volatility. They are now viewing prospects with far greater confidence than before."
Published Monday February 7, 2005
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