14.04.202008:59:00UTC+00UK Financial Services Expectations Deteriorate In Q1

UK financial services optimism deteriorated in the first quarter as firms see a sharp decline in business in months ahead amid coronavirus pandemic, survey data from the Confederation of British Industry and PricewaterhouseCoopers showed on Tuesday.

A balance of -41 percent were less optimistic about the business situation in the first three months of 2020. Moreover, a balance of 30 percent forecast a fall in business volumes in the June quarter.

According to the quarterly survey of 103 firms, profitability and employment are tipped to fall over the next quarter. Investment plans for the year also deteriorated.

The survey was conducted between March 2 and 26.

"The bulk of the survey took place before social distancing measures were ramped up, but there were already signs of the Covid-19 pandemic leaving its mark," Rain Newton-Smith, CBI chief economist, said.

"With the peak of the economic impact to come, equipping the sector to deliver for business is crucial in supporting the growth recovery beyond the pandemic," the economist added.