Morgan Sindall has said the credit crunch began to hit areas of its fit-out business in the first quarter of 2008.

In a trading statement ahead of its annual meeting this week, the £2.1bn-turnover company said it was trading in line with expectations despite the downturn.

John Morgan, executive chairman of Morgan Sindall, said: “The wider fit-out market has held up over the first quarter although the credit crisis has led to subdued activity in the financial services sector.”

Elsewhere, Morgan said the market had made a “satisfactory start to 2008”, although he conceded the commercial sector was quieter.