Decline in Optimism Among UK Financial Firms Reaches Two-Year Low

January 9, 2025 - 12:18

A recent survey has revealed a significant drop in optimism regarding the business outlook for financial firms in the United Kingdom, marking the steepest decline in two years. The Confederation of British Industry (CBI) reported that sentiment among these firms plummeted to -28% in December, a notable decrease since September 2022.

Despite witnessing an increase in business volumes over the preceding three months, the survey results indicate that concerns surrounding costs have overshadowed any positive developments. Respondents expressed worries related to the budget proposed by Finance Minister Rachel Reeves, which appears to have contributed to the overall pessimism within the sector.

This downturn in sentiment reflects broader economic uncertainties faced by financial institutions as they navigate a challenging landscape. The findings underscore the importance of addressing cost-related issues to restore confidence and foster a more stable business environment in the upcoming months.