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Occupier demand for commercial property hit a two-year high over the past six months as confidence rose for the first time in eighteen months, according to the CBI/GVA Grimley bi-annual Property Trends Survey. The survey covers offices, shops, factories and warehouses. Companies expect property holdings to increase in every UK region and sector over the first half of 2004.   Financial services companies' profitability rose at its fastest rate for over three years as business volumes and optimism increased for the third quarter in a row. The latest quarterly survey of the sector by the CBI and PricewaterhouseCoopers, also showed financial services companies increased staffing for the first time in a year.   Reacting to the Bank of England's decision to hold interest rates, the CBI's Ian McCafferty said: "Business will be relieved that the Bank is pursuing a gradualist approach while the strength and extent of the recovery remain uncertain. Growth is still focused on a few sectors of the economy and business confidence remains relatively fragile, though it is improving."   Retail sales growth gained momentum in December after a slow start in November, with firms reporting sales figures typical of the season over the last ten years. Retail sales for the first three weeks of December were sharply higher than in the same period in 2002 with the annual growth rate returning to that recorded in October, according to the CBI's monthly Distributive Trades Survey.   Reacting to the European Commission's launch of a consultation on working time regulations, the CBI's Susan Anderson said: "The Commission is right to recognise the importance of choice over working hours. "People have the right to say 'no' to long hours and the directive rightly gives them that protection, but they must also have the right to say 'yes'."   The government must step up efforts to build a more entrepreneurial Britain, Digby Jones has stated in his 2004 New Year message. "There are indications that ministers are ready to fight the corner of wealth creation and enhance competitive advantages. They are clearly resisting union demands for more unproductive employment regulation ... and damaging initiatives from Brussels."   Low company profits and intense price competition have held down pay settlements across the private sector, according to the latest CBI Pay Settlements Survey. "Weak trading conditions and intense price competition have ensured private sector settlements remain benign and pose no threat to inflation. I do not expect these factors to change rapidly next year," said the CBI's Doug Godden.