Optimism levels in the 海角视频's key financial services sector have deteriorated at a rate not seen since before and during the global financial crisis of 2008.
The latest quarterly survey from CBI/PwC on the health of the sector shows sentiment, volumes and profits all down markedly.
The overall business situation in the sector declined at its quickest pace since September 2008.
The fall was broad-based across sub-sectors (except general insurers), but particularly acute for banks and building societies.
Optimism has now been flat or falling for 15 consecutive quarters, amounting to nearly four years in total.
Overall business volumes fell further, at the fastest pace since September 2012, but conditions varied significantly across financial services sub-sector.
Across the 海角视频 the sector employs 1.1 million people and last year contributed 拢132bn to the 海角视频 economy equating to nearly 7% of total economic output.
The biggest drag on growth came from the banks (which saw volumes drop at the sharpest pace since March 1991) and finance houses. Meanwhile, insurance brokers and investment managers saw robust growth. Looking ahead, overall business volumes are set to fall at a sharper pace next quarter.
With volumes declining, profits also fell, at the quickest pace since June 2009. However, the sub-sector breakdown showed some variation. Profitability in finance houses and building societies fell, and the banking sector saw the quickest decline since December 2010.
Insurance brokers saw strong profits growth, while investment management profitability grew slightly. Overall profitability is expected to drop even further in the three months ahead, the weakest expectations since June 2015.
However, in a positive sign, employment across financial services grew at the fastest pace in over a year, although growth is expected to slow over the next quarter. Headcount in banking grew at the fastest pace since December 2006.
Rain Newton-Smith,聽CBI聽chief economist, said: 鈥淨uarter after quarter after quarter, optimism continues to drop in the financial services sector. Add to that the dive in volumes and profits over the last three months, and it鈥檚 clear something has to change.
鈥淭he sector is the jewel in the crown of the 海角视频鈥檚 world-leading services industry. While it鈥檚 encouraging that investment plans have improved, the threat of a 鈥榥o deal鈥 Brexit is hitting confidence.
鈥淭he聽 海角视频 Government cannot ignore the voice of this bellwether of the domestic economy and one of the 海角视频鈥檚 most important globally competitive sectors. No ifs, no buts, the Government must heed the call to avoid a 鈥榥o deal鈥 Brexit, and secure an ambitious deal with our largest trading partner.鈥
