Recruitment firm Michael Page said its UK growth slowed to almost a standstill last quarter as the financial sector turmoil put the brakes on new hirings.

The group saw UK gross profits during the second quarter this year rise by 1.2% to £48.5 million compared to last year, down from the 6.7% and 16% growth seen during the previous two quarters. Profits from finance and accountancy recruitment fell 8% in the second quarter.

Micheal Page, whose UK business contributes nearly a third of group profits, said second quarter trading was boosted by Easter falling in March but this was "offset by the continuing weakness in the banking and related sectors".

The UK was by far the worst performing region for the recruiter. Overall gross profits were up 26% to £152.4 million during the second quarter, boosted by growth on mainland Europe, Asia-Pacific and the Americas.

Michael Page said outside of UK finance and accounting, the business was experiencing "good job and candidate flow". But in a sign of a slowdown expanding to non-financial markets, it said: "There is increasing cautionary behaviour being shown, both by candidates and clients."

The group opened offices in Newcastle, Canterbury and Cardiff. Headcount in the UK at June 30 was 1,863, up from 1,799 at the end of last year.

Business boomed in mainland Europe, the Middle East and Africa, with second quarter profits soaring 45% to £70.3 million.

In Asia Pacific, profits were up 33.2% to £19.6 million, while the Americas came in 41.6% better at £14.1 million. The US and Canada region saw profits grow by 14%, and Latin America - which the group said had seen "little impact" from the credit crunch - by 54%.

Michael Page's chief executive Steve Ingham said he was delighted by the second quarter performance, which he put down to the group's diversification. It operates in 25 countries.