CBI survey says financial services to contract

According to the most recent joint CBI* & PwC survey, the UK’s financial services industry is due to contract in the next few months

What are the figures?

  • 30% of firms had recently increased the number of jobs, however
  • Nearly 40% of firms said they had cut jobs already, with more planning to in the next few months
  • Customers in arrears running at the highest rate since 2009
  • Spending on technology increasing but spending on marketing, buildings etc. all reducing sharply.

Rain Newton-Smith, CBI Chief Economist, said:

“The bulk of the survey took place before social distancing measures were ramped up, but there were already signs of the Covid-19 pandemic leaving its mark. Expectations for business volumes and headcount weakened, non-performing loans rose sharply, and financial firms are planning heavy cuts to investment in the year ahead.”

Summary

So, although the CBI survey is just that, a survey, it seems likely that our financial industry is likely to contract in the next few months

Sources & Notes

*The CBI is the main lobby group for large businesses in the UK.

https://www.cbi.org.uk/media-centre/articles/financial-services-expectations-deteriorate-as-pandemic-concerns-rise-cbipwc/