Sentiment among financial services firms deteriorated further in the quarter to March, plunging sharply at the fastest pace since December 2008, according to the latest CBI/PwC survey
Optimism dropped to -43 in Q1 from -24 in the previous quarter. This decline was most marked in the banking sector, where optimism was at -95, compared to -35 the previous quarter, the research showed.
Business volumes fell for a second quarter and at the fastest pace since September 2012.
Volumes decreased from -7 in Q4 2018 to -12 in the first quarter of 2019. These are also forecasted to fall further in the next quarter to -30, with expectations that business volumes will also drop to 2008 levels.
Rain Newton-Smith, CBI chief economist, said: ‘The alarm bells ringing at the state of optimism in the financial services sector have now reached a deafening level. It has plummeted at the fastest rate since the depth of the financial crisis. Additionally, business volumes and employment have fallen over the last quarter.’
Report by Pat Sweet
