INSTANT VIEW - Services recovery slows in June

LONDON (Reuters) - The dominant services sector expanded for a second month in June but the pace of recovery slowed as new business contracted and firms stepped up the pace of job cuts, a monthly survey showed on Friday.

KEY POINTS

- First fall in activity index since Nov 2008

- Firms cut headcount for 14th consecutive month

- Business expectations index highest since Oct 2007

ECONOMISTS' REACTION

HOWARD ARCHER, IHS GLOBAL INSIGHT

"While the purchasing managers' survey for the services sector indicates that the sector expanded modestly for a second successive month in June, there are also warning signs about the sustainability of the recent improvement in activity."

"Not only did the rate of expansion slow marginally in June, but more worrying for future prospects incoming new business contracted anew in June, albeit modestly, while employment in the sector contracted at an increased rate."