The survey shows that volumes across the sector offered the first signs of recovery in the last three months though levels of business were still considered to be well “below normal.”
Thirty two per cent of firms said volumes rose in the three months to early September while 24 per cent said they fell, giving a balance of 7 per cent, the first increase in two years and the highest since September 2007.
The survey reports that securities traders and investment managers have seen strong volume growth over the past quarter and banks and building societies anticipate growth to resume over the next three months.
It says life insurers and insurers and insurance brokers expect further albeit slower falls in business volumes.
CBI Chief economic adviser Ian McCafferty says: “”Business volumes have increased, for the first time since the onset of the credit crunch, and a fall in running costs helped lift profitability. This is concrete evidence of the gradual path to recovery that firms were anticipating in our June survey of the sector.
“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.”