Confidence amongst financial services firms has increased, despite a dip in activity during Q3, according to a survey from the Confederation of British Industry.

The survey found a balance of financial services firms reporting a rise in output versus a fall was 27%. Though down from 42% the quarter before, the CBI said this was significantly higher than the long-run average of 13%.

Looking ahead, 41% of firms projected business volumes to pick up over the next quarter.

Louise Hellem, CBI chief economist said: “It’s great to see financial services firms reporting another positive quarter, with optimism and volumes growth both firm and activity expected to pick up further in the months ahead," adding that the sector could record a stronger quarter if the government is able to improve the sector’s regulation in its Autumn Statement.

Commenting on the findings, Khalid Talukder, co-founder of DKK Partners, said: “It is great to see the financial services sector set a positive standard for businesses across the UK, remaining confident despite the turbulent times experienced over the last few years. The UK acts as a global financial hub and it is vital that the industry remains strong in order to continue attracting overseas investment while supporting the growth of international relations.”

“The priority should be new regulations to reduce barriers, capitalising upon post-Brexit freedoms with the aim of providing the financial services increased opportunities in the future to focus on areas such as investment, which UK businesses so desperately need. As we attempt to solidify our position as a financial hub and leader in technology, our financial services sector must remain robust as changes are implemented, allowing businesses to gain the support they need to grow the economy and allow the UK to remain a global powerhouse.”

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