Financial services hit by falling activity and sharp drop in sentiment - London Business News | Londonlovesbusiness.com
Briefly

In the second quarter of 2025, business volumes in the financial services sector declined at the fastest rate since December 2023. Optimism among firms also dropped steeply, marking the most significant decrease since September 2022. Despite expectations for activity to stabilize in the next quarter, headcount is projected to decline rapidly. Investment intentions remain weak due to ongoing economic uncertainty. Profitability has dropped considerably, while non-performing loans fell sharply. Firms anticipate a further reduction in investment in certain areas over the next year, although IT spending is expected to increase slightly.
Business volumes in the financial services sector fell at the fastest rate since December 2023, with a weighted balance decline of -24% in the second quarter of 2025.
Optimism among financial services firms declined sharply in June 2025, with a steep fall of -55% from -8% in March 2025, the most significant drop since September 2022.
Read at London Business News | Londonlovesbusiness.com
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