Optimistic Mood for Q3 from the Financial Sector Despite Poor Results of Q2
Reports have come out stating that Britain’s growth in the financial sector fell short of predictions for Q2. However the outlook for Q3 is forecasted for improvement. The Confederation of British Industry (CBI) and auditors from Pricewaterhouse Coopers polled finance companies to get an outlook on whether the mood was optimistic or not.
Thirty-eight per cent reported a rise in business volumes and 29 per cent reported a decline. Those that had expected an increase when they were polled in March totaled 48 per cent. For Q3 a total of 63 per cent expect an increase in business volume. CBI Deputy Director General, John Cridland said: "The modest pick-up in the financial services sector in the past three months fell short of expectations. But firms hope that activity will strengthen over the coming quarter and are now planning to expand their staff numbers." A positive outlook is a bonus in the wake of the Budget and the expected cuts in government spending. A boost to the private sector is what is expected in the long run from the Budget and this may mean that expectations are being reflective of the hopes for the future.