Financial services activity falls in Q2 2025 – CBI

Financial services activity fell sharply in Q2 2025, according to the Confederation of British Industry (CBI) Financial Services Survey. 

Business volumes dropped by 24% in June, down from a 5% rise in March, the fastest rate of decline since December 2023.

The survey found firms expect business volumes to remain broadly unchanged for the next quarter, with a slight rise of 3% expected. 

Headcount in the sector fell by 7% during the quarter, after remaining steady in the previous three months. 

Firms expect headcount to fall much more sharply by September, forecasting a drop of 52%.

Profitability fell by 24% in the second quarter, compared to a 9% drop in March.

Uncertainty about demand was the most common reason for limiting investment, mentioned by 55% of firms, up from 42% last quarter and higher than the long-term average of 48%.

Almost half of firms, 45%, pointed to other factors likely to limit investment, up from 36% in March.