The British financial sector is worried that tough times are coming...
A new survey of the UK’s financial sector shows increased economic uncertainty. Confidence among financial companies has fallen at its fastest rate since 2011.
Uncertainty over the Brexit vote, increased market volatility, and a slowdown in China and emerging economies are the main concerns highlighted in the report.
The CBI / PwC survey of the financial sector found that the banking and investment management sub-indexes are the most pessimistic.
Rain Newton-Smith, the director for economics at CBI, a British business lobby group commented on the report, "Concerns over China and a volatile start to the year for markets, alongside uncertainty about a possible Brexit, have created a perfect storm to dampen optimism in financial services," he said.
The poll of 104 businesses found that a number of businesses have put major investment decisions on hold until after June's referendum, although Mr Newton-Smith added that this practice is not "widespread."
The financial sector accounts for 10% of the UK’s GDP. This report comes weeks after Chancellor of the Exchequer, George Osborne downgraded the UK’s projected economic growth from 2.4% to 2% in 2016.
The CBI is a supporter of the UK remaining in the EU. 80% of its members are pro-EU membership, with only 5% supporting an exit.
A previous publication from the group featured analysis which predicted that a Brexit could result in the loss of 950,000 jobs and leave the average British household £3,700 worse off by the end of this decade.