Services sector slowdown fuels fear

Double-dip recession fears have been fuelled as the UK's powerhouse services sector registered its slowest growth in more than a year during August.

The Chartered Institute of Purchasing and Supply's (CIPS) latest activity index - where a score over 50 signals growth - fell from 53.1 to a disappointing 51.3 last month, the biggest drop since May 2009.

Services firms are shedding jobs at the fastest rate since October last year while sales growth is at a 14-month low, CIPS added.

Chief executive David Noble said it was "too early" to predict a return to recession but added: "The lowest growth rate in the services sector for over a year does seem to reflect what's been happening elsewhere in the economy.
© 2012 Press Association