Sentiment within the financial industry has fallen again in Q3 2017 after having remained flat or even felt over the last 18 months, according to the latest data released by business lobby CBI and consultancy PwC.
The survey, which analysed 94 financial services firms, found that banks and building societies were among those companies that had seen their confidence in the financial sector more deteriorated.
The report also highlighted some of the reasons behind this fall, pointing the current macroeconomic environment, a turbulent political landscape, and the continued uncertainty about the UK’s future trading relationship with the EU after Brexit.
Rain Newton-Smith, chief economist at CBI, said: “While demand in the sector is expected to hold up in the near term, we can’t ignore the fact that optimism has dropped in almost every quarter for the past two years.”
However, the job market seems to be strong and stable, with growing volumes of business, increased profits and with firms expected to step up in the pace of hiring over the coming quarter, the survey showed.