According to the CBI, the UK finance sector has experienced its first growth for two years.

According to a recent survey, financial services in the UK are experiencing growth in business volumes for the first time since June 2007.

The survey conducted by PricewaterhouseCoopers (PwC) and the CBI found 7% of respondents said that business increased in the three months to early September.

Firms are generally more optimistic about the overall business situation compared with three months ago, despite business levels still being well below average. Lack of demand is a worry for many companies in upcoming months.

The slight growth in business shows the first sign of recovery after two years of falling business volumes and profitability. 32% companies said that volumes had risen, while 24% said that they had fallen.

Securities traders and investment managers in particular saw strong volume growth over the past three months, while banks and building societies expect that growth will resume in the next quarter.

Andrew Gray, Head of UK Financial Services Consulting at PwC, commented: “For the first time since June 2007, banks are experiencing an upswing in confidence.

“Confidence is, in part, offset by concerns of further impairments and the impact of ‘tougher’ regulation.”

Life insurers and insurance brokers anticipate further falls, but expect the falls in business volumes to get gradually slower.

30% of firms also reported a reduction in staff numbers, with the numbers in the financial sector falling heavily again. The rate of job losses is expected to ease in the next quarter, but will mark two years of falling employment in this sector.

Ian McCafferty, CBI’s Chief Economic Adviser, said: “Business volumes have increased, for the first time since the onset of the credit crunch, and a fall in running costs helped lift profitability.

“Future demand is still a major concern for financial services firms, however, and further pain will continue to be felt in job losses and lower investment.”

Business sentiment has also improved during the three months to September with 36% of firms surveyed more optimistic about the general business situation.