The UK service sector continued to buckle under the pressure of rapidly rising costs and deteriorating demand in June, with activity declining at the second fastest rate in the survey history and incoming new work falling at a record pace.

The service sector, which includes the recruitment industry, is continuing to buckle, according to the Chartered Institute of Purchasing and Supply (CIPS).

The CIPS/Markit Business Activity Index posted a reading of 47.1, its lowest level since October 2001, while the Incoming New Business Index posted a reading of 45.1.

Employment fell for a second successive month in June as the seasonally adjusted Employment Index posted a reading of 47.6 and the seasonally adjusted Business Expectations Index came in at 59.4, its lowest level in the 12-year survey history.