Business confidence throughout the UK’s powerful financial services sector is feeling the strain of a troubled market and economic uncertainty.
Pressure mounts on the Bank of England this week to restart measures to kick-start the fragile recovery.
Optimism amongst banks, building societies, insurers, investment companies and accountants has declined to its lowest since March 2009 as companies expect more challenging conditions.
This report is from the business lobbying organisation the CBI and accountants PricewaterhouseCoopers (PwC), which states that profits are going to stagnate over the next quarter for the first time in two years.
The depressing survey results from a key sector in Britain’s economy come amongst heightened calls from business leaders for the Bank’s Monetary Policy Committee (MPC) to recommence with quantitative easing, that is, pumping money into the economy by purchase assets like government bonds .
The FTSE 100 Index plunged nearly 14 per cent over the past quarter, the fourth greatest loss in its history wiping £212billion from the value of Britain’s leading companies.
A recent survey highlighted that 20 per cent of companies are less optimistic than three months ago, the first time confidence has slipped since March 2009.