UK service sector growth slows in August

Fall in confidence blamed by some analysts on turmoil in world markets and slowdown in China

The engine of Britain's economic growth slipped a gear in August after the services sector expanded at its slowest rate for two years.

In another sign that the UK economy is losing momentum, the Markit/Cips survey of the services sector, which generates more than three-quarters of Britain's income, found a broad slackening in activity and a decline in the confidence of businesses in the outlook for the rest of the year.