The 102nd CBI/PwC Financial Services Survey paints a picture of improved confidence, with optimism rising across all industry sub-sectors. Despite a moderate growth in business volumes, firms reportedly kept average costs well under control, and profitability improved in all sectors except for life insurance.
Against this backdrop, overall employment fell for a second consecutive quarter, weighed down by lower headcount in banking and general insurance. This trend is expected to continue in the following months.
Asked to comment on the UK’s regulatory environment, most sectors appear dissatisfied. Banks and security traders in particular feel that the regulatory burden is disproportionate and too costly.
The CBI/PwC Financial Services Survey is a quarterly trends report that discusses the health, perceptions and plans of the UK financial services industry.