Findings from a joint study by PricewaterhouseCoopers and the Confederation for British Industry (CBI) revealed that financial services business activity during the last three months grew at its fastest rate since September 2007.
In the three months to June 38 per cent of respondents said business levels grew while 29 per cent said activity dropped leading to an overall balance of nine per cent.
The conductors of the survey claimed that although this figure showed that business activity grew, levels of growth were lower than originally anticipated.
John Cridland, CBI deputy director-general, said: âThe modest pick-up in activity in the financial services sector in the past three months fell short of expectations. But firms hope that activity will strengthen over the coming quarter and are now planning to expand their staff numbers.
âThis survey was conducted when financial markets were feeling the intense strain from fears over euro area sovereign debt and, for the first time in over a year, a notable minority of firms were worried that the risk of further market deterioration is high.â
Further findings from the survey showed that many firms working within the financial services sector are concerned by the potential costs of complying with new regulation over the next 12 months.
By Jim Ottewill