Daily Express

Financial service demand falls

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DEMAND for financial services has fallen for the first time in five years, according to a new report.

Research by the CBI and PwC suggested that business volumes in the sector fell slightly in the three months to last December, the first contractio­n since the end of 2013. A survey of 84 firms indicated that business was “flat or falling” for banks, building societies and specialist lenders, but holding up among insurers.

The CBI said business volumes are expected to fall in the quarter to March.

Rain Newton-Smith, the CBI’s chief economist, said: “A combinatio­n of macroecono­mic and Brexit uncertaint­y, regulatory compliance and global market volatility are taking a toll on the UK’s financial services sector.

“Financial services are a bellwether for the wider economy. The persistent weakness in optimism sounds a warning for the outlook.”

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