The UK’s services sector has continued to expand with a modest improvement, according to the latest Markit/CIPS Business Activity Index.

After accounting for seasonal factors, the headline Markit/CIPS Business Activity Index registered 52.8. Although higher than August’s low of 51.3 and above the 50 no-change mark for a 17th successive month, growth in Q3 as a whole was the weakest since Q2 2009.

Chris Williamson, chief economist at survey compilers Markit, says: “Business activity rose at a faster rate than August, but the survey provided plenty of signs to suggest that this does not represent the start of a renewed upturn, and instead growth is set to remain subdued in the coming months.

“Anecdotal evidence from the survey reveals that inflows of new work and prospects for the year ahead have been hit by widespread worries that the recovery is losing steam, cancelled government contracts and the prospect of more cuts to come, as well as uncertainty regarding the impact of October’s Comprehensive Spending Review.”