Financial service business volumes have grown for the first time in two years.

PricewaterhouseCoopers and the Confederation of Business Industry (CBI) surveyed banks and building societies to show a 7% increase in the three months to early September.

PwC and the CBI said that future demand is still “a major concern”.

Out of the financial service businesses surveyed, 36% said they were more optimistic about their business situation than in June.

Andrew Gray, head of financial services consulting at PricewaterhouseCoopers, told the BBC: "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."

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