Skip to content
Search

Latest Stories

British financial services achieve third quarter of growth, survey says

British financial services achieve third quarter of growth, survey says

BRITAIN'S financial services grew for the third quarter in a row in the last three months of 2021 and at their fastest pace since mid-2017, even though Covid-19 dampened optimism, a survey of 105 firms in the sector showed.

A year since the Brexit transition period ended, the health of British financial services is being closely monitored after the city of London was largely cut off from the European Union.


"While volumes and profitability growth across the financial services sector remain buoyant, the softening in optimism is something to watch closely, due to increased Covid-19 uncertainty clouding the near-term economic outlook," CBI chief economist Rain Newton-Smith said in statement.

The survey of 105 financial firms by the CBI employers group and consultants PwC was completed just before fresh restrictions were introduced in Britain last month to tackle spiralling cases of the Omicron variant of coronavirus.

In the first three months of 2022, firms expect activity to remain robust and at a strong pace, the survey found.

Profitability growth is expected to ease somewhat in the coming months, with numbers employed predicted to grow solidly and retaining talent the top workforce priority, it said.

Looking just beyond the first quarter, Britain has said that large companies must disclose climate-related financial data from April 2022 using a globally-agreed set of guidance.

The survey showed that 40 per cent of firms were "somewhat prepared" for April, with 14 per cent saying there were not ready, and remaining companies saying they were fairly or very prepared.

(Reuters)

More For You

UK houses

UK house price growth slows to 0.3 per cent in October.

iStock

UK house price growth slows as buyers delay decisions ahead of budget

Highlights

  • Average UK house price rose 0.3 per cent in October to £272,226, down from 0.5 per cent growth in September.
  • Annual house price growth edged up to 2.4 per cent, with market remaining resilient despite mortgage rates being double pre-pandemic levels.
  • Buyers delaying purchases amid speculation that November budget could introduce new property taxes on homes worth over £500,000.
British house prices grew at a slower pace in October as buyers adopted a wait-and-see approach ahead of the government's budget announcement on 26 November, according to data from mortgage lender Nationwide.

The average house price increased by 0.3 per cent month-on-month in October to £272,226, down from a 0.5 per cent rise in September. Despite the monthly slowdown, annual house price growth accelerated slightly to 2.4 per cent, up from 2.2 per cent in the previous month.

Robert Gardner, Nationwide's chief economist, said the market had demonstrated broad stability in recent months. "Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs".

Keep ReadingShow less