Executive summary
The 92nd CBI/PwC financial services survey shows a
further decline in sentiment, accompanied by the first overall fall
in volumes of business since 2009. Economic uncertainty in the UK
and across Europe is overshadowing the industry, but it is
encouraging to see that commercial business is holding up well.
Costs and employment remain under control, but pressure on
profitability implies that firms need to find greater savings.
Unfortunately the rising tide of regulatory cost is making that
goal difficult to achieve.
Confidence falls again, and business volumes decline for
the first time since 2009
The confidence of UK financial services firms continues to
decline, leaving March's improvement in sentiment far behind
(see Figure 1). Apart from investment management, all the major
sub-sectors of financial services are feeling less confident about
their business situation.
