Recruitment firms look set to benefit from a surge in demand for business services. Evidence points to robust demand for professional services as the UK economy begins to fire up once again.

A survey by the CBI and accountancy firm Grant Thornton revealed that 43% of business and professional firms saw business volumes rise over the past three months, with only a quarter of firms claiming that business had fallen.

The report also predicted business would increase at the highest rate for five years – and singled out recruitment as a growth area.

But Steve Edmonds, head of Grant Thornton’s Entrepreneurial Business Services, said: “Rising employment costs and a growing skills shortage may take the shine off results and restrict growth. Recruitment agency Parker Bridge has already reported that secretaries and PAs are in short supply. HR is also a big growth area because of increased employment legislation.”