Financial sector confidence about UK economy drops sharply

Optimism among companies has fallen at fastest rate since 2011, reflecting fears of global slowdown and EU referendum uncertainty

Fears over the UK's faltering economic outlook have been underlined by a survey showing a sharp drop in confidence among financial services firms, against the backdrop of the Chinese slowdown and the EU referendum.

Optimism among companies in the UK's financial sector has fallen at the fastest rate since 2011, reflecting a backdrop of tumultuous markets and worries about a global economic slowdown. The downbeat outlook from one of the UK's key sectors - which accounts for around 10% of GDP - will add to fears that the economy will slow this year amid global pressures and domestic challenges. The survey also indicated that banks in the UK are preparing to cut more jobs.