Finance firms see regulation denting prospects: CBI
LONDON (Reuters) - Financial firms saw strong growth in the second quarter but have become less optimistic about longer-term prospects owing to regulatory concerns, according to a survey on Friday.
Some 59 percent saw sales volumes rise in the three months to June, representing a ninth consecutive quarter of growth, a survey by the Confederation of British Industry and accounting and consultancy firm PricewaterhouseCoopers found, with 21 percent reporting a fall.
"The financial services sector has seen another quarter of robust growth, with business volumes, income and profitability all rising solidly once again," CBI chief economic adviser Ian McCafferty said.
The CBI said regulatory compliance had been a key factor behind financial services firms' capital expenditure planning.
The number of firms anticipating having to spend more on regulatory compliance in the next year rose to 77 percent from 58 percent in the last quarter.
"Businesses are less optimistic than in the previous survey, have reduced headcount and are reappraising investment plans. Regulatory compliance is an increasing factor shaping investment, activity and intentions," said McCafferty.
(Reporting by Matt Scuffham; Editing by Dan Lalor)
- Tweet this
- Share this
- Digg this