8.53am: Financial services activity steadies after sharp fall
UK financial services activity steadied last month after the sharpest fall since the pandemic, according to the CBI financial services survey published overnight.
Business volumes declined with a weighted balance of -36%, down from -24% in June. Despite the deterioration in activity, sentiment was broadly flat, rising to +3 after a sharp fall of -52% in the previous quarter.
Firms expect conditions to improve next quarter, with volumes growth forecast at +37%. Profitability fell at a slower rate in Q3, at -13% compared with -24% in June, but is expected to rise sharply in Q4 (+26%). Headcount dropped by -24% but firms see the pace of reduction slowing to -7%.
Louise Hellem, CBI chief economist, said: “Financial services firms saw the sharpest fall in business volumes since the pandemic during Q3, alongside a fast decline in spreads. However, sentiment steadied in…
