CBI / PwC Financial Services Survey - June 2012Follow @PwC_North
The survey shows a sharp decline in UK financial services sentiment. The fall in confidence reflects renewed volatility in European financial markets, a weakening economic outlook and growing concern about the strategic impact of regulation on the industry. At the same time, many firms remain upbeat about their own business prospects and most sectors expect volumes of business to continue to grow.
The contrast between individual optimism and collective pessimism will present some serious challenges for strategic planning during the second half of the year. This is evident from the employment outlook, which is cautiously optimistic at the industry-wide level but varies considerably between sub-sectors.
Firms also need to balance their need to control their costs with the requirements of investment. This is especially true in the compliance arena, where many firms report rising costs. The industry is increasing its focus on the long-term impact of regulation on its business models.
The CBI/PwC Financial Services Survey is a quarterly trends report that discusses the health, perceptions and plans of the UK financial services industry.
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