Financial services companies cut jobs at their fastest rate for more than six years during the first three months of the year.
At the same time business fell for the second quarter in a row for the first time since March 1993, according to the CBI and Pricewaterhouse Coopers.
The survey found 43 per cent of firms had cut staff numbers during the first quarter, compared with 13 per cent who had increased them.
The balance of minus 30 per cent indicated jobs were cut at their fastest rate since September 1996.
John Hitchins, UK banking leader at PricewaterhouseCoopers, said: "A second quarter of declining profitability has triggered a sharp fall in business confidence. The extent of job cutting suggests companies believe an upturn is not imminent."
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