Growing financial services sector 'defies expectations'

Despite expectations that the financial services sector would be hit by the current UK market volatility, new figures reveal growth.

Data from the Chartered Institute of Purchasing and Supply (Cips) reveals that its index of services activity rose in August to 57.6. Any score above 50 is considered indicative of expansion.

Employment and staff shortages were both seen to increase during the month, while business confidence in financial services for the next 12 months remained high.

"These results point to further sharp growth of the services economy. The expectations component will be especially pleasing to those looking for evidence that the real economy can weather the storm in financial markets," commented Andrew Grantham, economist at NTC.

Meanwhile, Global Insight's Howard Archer said there was "little evidence" of dampening activity in financial services, which could be good news for those seeking finance jobs in London.