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.”
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.