Sentiment among UK financial services firms fell at its quickest pace since September 2019 as businesses worry about the impact of the cost-of-living crisis, according to a new survey.
Firms reported declining optimism, with fears over low demand for services and poor returns on investment, which is limiting spending in the sector on recruitment and expansion, the latest CBI/PwC Financial Services Survey found.
Labour shortages were also cited as a cause for concern, although these appear to have improved significantly from the end of last year. Business volumes have continued to grow in the three months to March, respondents said, but at a slower pace than the final three months of 2021.
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