The UK services sector has increased in September, according to data released by to financial data company Markit.

The purchasing managers index for UK services rose to 52.8 for the month, up from a 16-month low of 51.3 in August.

However, new business inflow fell to its lowest level for the year due to concerns about the strength of the recovery

"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," said Chris Williamson Markit's chief economist.