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Growth in the UK service sector slowed further in September to its lowest rate in nearly two and a half years, a survey has indicated.
The latest Markit/CIPS service sector purchasing managers index (PMI) fell to 53.3 last month from 55.6 in August.
Although above 50, indicating growth, it was the lowest figure since April 2013 as global uncertainty and weak UK manufacturing weighed on businesses.
Service sector growth in the third quarter slowed to a two-year low.
Markit said that its survey data indicated that UK GDP growth slowed to 0.5% in the third quarter of the year, and is entering the fourth quarter at a pace of 0.3%.
‘Financial jitters’
Chris Williamson, chief economist at Markit, said: “Weakness is spreading from thestruggling manufacturing sector, hitting transport and other industrial-related services in particular.
“Wider business service sector confidence has meanwhile also been knocked by global economic worries and financial market jitters.”
He added the survey suggested shoppers were more cautious, pulling back on their leisure spending on restaurants and hotels.
Another PMI survey suggested growth slowed to a four-month low in the eurozone last month, even though new orders and higher output created more jobs.
The Markit eurozone composite PMI dropped to 53.6 from 54.3 in August, as growth decelerated in Ireland, Germany, Spain and Italy.
