UK services sector growth slows

The services sector grew at its slowest pace for nearly a year in June as austerity measures dealt a blow to confidence, it was revealed today.

The latest activity index from the Chartered Institute of Purchasing and Supply (CIPS) - where a score over 50 indicates growth - showed services output at 54.4 in June, down on the 55.4 seen in May and marking the weakest result since August 2009.