Financial services optimism fell in months leading up to lockdown, says survey

The quarterly survey of 103 firms found that business volumes, profitability, and employment are all tipped to fall over the next quarter.

Investment plans for the year ahead have also deteriorated. Optimism about the overall business situation in financial services fell sharply in the three months to March, albeit at a slower pace than some of the drops seen over 2019. Furthermore, the value of non-performing loans also ticked up sharply in the past quarter.

Rain Newton-Smith, CBI Chief Economist, said: “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. Expectations for business volumes and headcount weakened, non-performing loans rose sharply, and financial firms are planning heavy cuts to investment in the year ahead.

Ms Newton Smith added: “Financial services are already playing an essential role in helping companies with their cashflow, through channelling funds from the government’s support schemes.

"But like other businesses, they’ve also been struck by staff shortages and changes to how they operate. As a result, alleviating capacity pressures and streamlining how firms access government support through our financial institutions is vital.

“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.”

Editor’s note: first and foremost - and rarely have I written down these words with more sincerity - I hope this finds you well.

Almost certainly you are here because you value the quality and the integrity of the journalism produced by The Yorkshire Post’s journalists - almost all of which live alongside you in Yorkshire, spending the wages they earn with Yorkshire businesses - who last year took this title to the industry watchdog’s Most Trusted Newspaper in Britain accolade.

And that is why I must make an urgent request of you: as advertising revenue declines, your support becomes evermore crucial to the maintenance of the journalistic standards expected of The Yorkshire Post. If you can, safely, please buy a paper or take up a subscription. We want to continue to make you proud of Yorkshire’s National Newspaper but we are going to need your help.

Postal subscription copies can be ordered by calling 0330 4030066 or by emailing [email protected]. Vouchers, to be exchanged at retail sales outlets - our newsagents need you, too - can be subscribed to by contacting subscriptions on 0330 1235950 or by visiting www.localsubsplus.co.uk where you should select The Yorkshire Post from the list of titles available.

If you want to help right now, download our tablet app from the App / Play Stores. Every contribution you make helps to provide this county with the best regional journalism in the country.

Sincerely. Thank you.

James Mitchinson

Editor