The UK's financial services sector has expanded for the fifth consecutive quarter, a new report claims.

A study by the Confederation of British Industry (CBI) and PricewaterhouseCoopers (PwC) found that the market is showing further signs of recovering from the global downturn, as profitability rises.

According to the research, the financial services sector grew at its most rapid pace since June 2007 during the last quarter and is expected to continue expanding during the coming three months.

A total of 37 per cent of firms questioned said they saw volumes rose compared with nine per cent claming they fell over the period in question, something that may benefit those seeking finance jobs in the UK.

PwC insurance partner Mark Stephen noted that companies are starting to hire again and this trend is predicted to continue.

However, CBI chief economic adviser Ian McCafferty noted that growth had been slower than anticipated and concerns are increasing about prospective regulation dampening expansion over the coming year.

A recent study warned that skills shortages may develop in the financial services sector as it recovers from the recession.

Posted by Kate Griffin