IFSL: Growth sustained in London’s financial markets in Q1

02 May 2006

International Financial Services London released its first Quarter City Indicators Bulletin showing that on an annual trend all but one of 14 indicators rose between the first quarters of 2005 and 2006, the only exception being take up in office space, which is a lagging indicator. Short term trends are also positive with 11 out of 14 indicators up between Q4 2005 and Q1 2006.

The only falls were in European IPOs, down following a very strong Q4; the vacancy rate, up slightly following a large fall in the previous quarter; and completed M&A deals. London accounted for two-thirds of European IPOs in Q1 and for nearly all the growth in European hedge funds in the second half of 2005.

Taken together, trends in forward looking indicators, including the CBI/PwC survey, new job vacancies, announced mergers and acquisitions as well as demand for office space, point to further growth in financial markets in 2006.

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