The service sector grew at its slowest rate for 10 months in June, according to the latest Markit/CIPS Business Activity Index for the sector.

The seasonally adjusted Markit/CIPS Business Activity Index posted a reading 54.4 in June, down from

May’s 55.4, marking the third time the index has fallen in the last four months.

The confidence in the sector reading registered its largest ever monthly fall, while input prices rose at slower rate; charges increased at strongest pace for 20 months.

Paul Smith, senior economist at Markit and author of the UK Services PMI, says: “Worrying signs for the UK service sector appeared in June as growth slowed in response to another below par increase in new business. While we continue to look for a 0.4%-0.5% rise in GDP for Q2, this may well already represent a peaking in the recovery cycle.”