Business issues

Financial Services survey

The Financial Services Survey is conducted on a quarterly basis and covers ten sectors of UK financial services

This qualitative survey has been conducted since 1989 and is completed by senior executives. It is sponsored by leading UK accountants PricewaterhouseCoopers. This survey celebrated its 20th anniversary in January 2010.

This survey is a unique and reliable source of short-term trends in the UK financial services sector. It provides essential information for senior executives, partners and investment managers and covers a wide range of activity from banking and insurance through to securities trading and private equity, picking up the major sectoral convergences as they evolve. The published data is used extensively by business analysts as a primary source of data for this increasingly diverse and complex sector. During the recent credit crunch, the survey was key in capturing the latest developments for the sector during the crisis. We were very pleased to be able to supply the European Commission (DG-Ecfin) with components of this data to assist in their understanding of what was emerging.

The survey, conducted in March, June, September and December covers information on, business optimism, value and volume of business, charges, costs and profitability, value of general insurance claims, employment and training, business prospects, market competition, growth and growth strategy, consumer debt, financial market conditions, regulation and the competitiveness of the UK as a financial services centre.

The processed responses convert to raw weighted data from which are derived percentage balances. The percentage balance statistic is the figure derived from the difference between the weighted percentage of companies answering in the positive, minus the percentage replying in the negative. This allows a single number with a plus or minus value to thus represent the answer to any question. Since most of the questions refer to changes in the level of a variable, the absolute value of a balance will give a guide to the change in the variable concerned.

The survey is classified according to the official Standard Industrial Classification (SIC 2007) and the survey weights are now updated on an annual basis.

A separate digest of the main survey information - in PwC' s Industry Sentiment series - supplemented by their specialist sector knowledge, is published by PwC. This publication is available direct from PwC at www.pwc.co.uk/financialservicessurvey . All participants receive a free digest of the latest results of the survey.

The CBI and sponsor PwC were proud to celebrate the 20th anniversary of the Financial Services Survey in January 2010. This key survey is the longest-running private sector indicator of the health of UK financial services and it has provided up-to-the-minute information on the health of the sector. The turbulence and uncertain conditions of the recent global financial crisis were keenly measured by this survey. The 20th anniversary was accompanied by the publication of a joint thought leadership book by CBI and PwC called 20/20 Vision, which reflected upon the survey's history and value and included significant leadership perspectives from key players and institutions in the UK Financial Sector. The CBI was very pleased to be able to collaborate with PwC on this report. We look forward to celebrating the silver anniversary of this survey with PwC in January 2015.

The CBI has also developed a rich policy perspective on UK financial services. Please visit our business issues section, to find out more.