Depressed banking sector raises spectre of triple-dip recession (in UK)
Source: The Guardian
British banks suffered a loss of business in December, adding to fears that a slowdown in activity across several sectors of the economy at the end of 2012 will push the UK into a triple-dip recession.
Banks were among several financial institutions to have suffered a drop in business volumes, according to a survey by the CBI and accountants PwC. Investment banks and insurance brokers also saw a decline in business in the final month of the year as financial services dragged on economic output along with manufacturing, high street sales and much of the services sector. Only construction has shown any strength in recent months, mostly from commercial building in London.
PwC said the loss of tens of thousands of jobs across the financial services industry in recent years would lead to staff shortages in 2013 and limit the potential for investment and growth.
Of the 94 companies that responded to the survey, 25% saw business volumes rise, and 30% reported a fall. The resulting balance of -5% represented the second consecutive quarterly decline and depressed hopes of a return to moderate growth.