The recovery in the catering industry is starting to falter as confidence falls in the wake of the Government's austerity measures.
The latest data from the Markit/CIPS purchasing managers' index ](http://www.cips.org/aboutcips/news/pmi/)(PMI) showed that the service sector, which includes catering, IT, banking and hairdressing, had expanded at its slowest rate for 10 months in June, prompting fears of a double-dip recession.
A monthly snapshot of the services sector showed the largest drop in business expectations in its 14-month history last month. The headline index dropped from 54.4 to 55.4, according to the Guardian.
"It is a shockingly weak result for the proponents of the idea of a V-shaped recovery in the UK. This is the beginning of a W-shaped scenario as the survey clearly shows the recovery momentum has peaked," Lena Komileva, economist at Tullett Prebon told the paper.
By Neil Gerrard
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