The fall has largely been attributed to continued difficult markets, political uncertainty and a drop in profitability at the beginning of 2016.
This has led to a decline in prioritising new product launches and M&A, and more focus on core activities such as customer retention and strategic partnerships.
Notable fall
Mark Pugh, asset and wealth management leader at PwC, said: “There has been a notable fall in confidence amongst asset and wealth managers during the last quarter, with the current global market turmoil having had an inevitable knock-on effect on confidence.
“And as companies begin to feel a real squeeze on margins, we are seeing a clear focus on both cost and competition. A continued investment in marketing shows certain organisations are holding their nerve and continuing to invest for the future.
“However, companies will be asking themselves how much longer they can maintain this position and when they may need to consider retrenching and looking to further cost cutting,” Pugh said.
Insurance
In contrast, confidence among life insurers was unchanged in the three months to March. General insurers reported that optimism rose marginally over the same period, while insurance brokers experienced a slight deterioration.
