Financial service sector sees confidence slump

Optimism in the UK’S vast financial services sector took a sharp fall in the third quarter as Brexit concerns mounted, a key survey today suggests.

The latest CBI/PWC financial services survey, which polls about 100 firms, found that optimism about the overall business situation fell further, having declined in all but one quarter since the start of 2016.

The deterioration of sentiment in banking and investment management was par- ticularly widespread, the study noted. Only finance houses reported an improvement in optimism.

David Brown, head of government and public sector at PWC in Scotland, said: “Scotland continues to play a vital role in the UK and global financial services sector, and so while it is concerning to see optimism decline, this is countered with the increase in business volume, which indicates a continued appetite for investors to move forwards.

“This comes at a crucial stage in the Brexit negotiations.”