Financial service sector jobs are being cut at their fastest rate since 1993, according to a survey from the Confederation of British Industry (CBI) and PricewaterhouseCoopers.

The survey shows that staff turnover slumped for the fourth quarter in a row due to hesitancy around changing jobs and a shortage of vacancies.

The survey also recorded a successive heavy quarterly decline in business volumes, with only 9% of financial services firms saying volumes had risen and 56% reporting a drop.

Profitability also fell, while investment plans have been scaled back, the survey shows.

Ian McCafferty, CBI chief economic adviser, says:??“Conditions remain exceptionally tough in the financial services sector, and have not been helped by equity markets having fallen further since our last survey in December.??

“Sharp drops in revenues and profitability are causing continued suffering, while business volumes remain very weak. Firms are making heavy cuts to staff numbers and investment plans to make savings and reflect weak demand.”