City firms expect to recruit staff again for the first time in two years as confidence in the financial services sector improves.

A survey by the Confederation of British Industry (CBI) has found that financial services companies’ business confidence improved last quarter more than at any other time in the last four years.

The survey showed that 44% of respondents were more optimistic about their business performance than three months ago, while only 7% were less optimistic.

More companies expect to increase employment over the next three months than to reduce it, according to the CBI, representing the first increase in employment in the sector in over a year.

However, this confidence is yet to translate into revenue for some recruiters. “There is an increase in confidence but we’re yet to see it backed up by recruitment drives,” said Peter Foster, marketing director at City recruitment firm Robert Walters. “There’s a lot of talk but not a lot of revenue following it.”