Despite lack of Brexit deal for London, finance firms keep on investing and hiring

Financiers and bankers alike are building up a momentum of plans to hire and invest in growth, despite concerns that the UK has not yet arranged a Brexit deal for the financial industry…

UK’s financiers say “they’re nervous about what the future holds – but are happy to invest and hire anyway.”

According to the Telegraph ‘Employment edged down in the three months to September but the proportion of finance firms planning to increase their headcount in the coming quarter outweighed those planning to cut staff by a margin of 11pc’ – this is down on recent levels but it’s still a solid expansion.

Although, optimism overall is still on the downward trend established at the start of 2016. Uncertainty over future business conditions is now the most commonly cited factor that could limit future investment growth. However, profits and business volumes are still growing, raising hopes that the gloomy outlook has not actually weighed too heavily on business performance.

The CBI’s chief economist, Rain Newton-Smith stated, “It’s encouraging to see volumes and profitability continuing to expand for most financial services firms, with hiring expected to pick up and investment intentions improving.”

Also adding, “With Brexit uncertainty affecting the wider economy, it’s vital that substantive progress is made during the next round of Brexit negotiations, so that transitional arrangements can be agreed and businesses can make decisions now about investment and employment that will affect economic growth and jobs far into the future.

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