The prospects of a "double dip" recession strengthened yesterday with the publication of a survey of business sentiment and activity in the largest sector of the economy, services.

The UK economy expanded further in the second quarter, but "serious" concerns pose a threat to a sustained recovery, the British Chambers of Commerce (BCC) warned today.

Britain's already sluggish and fragile economic recovery is set to lose more momentum and may relapse into recession, according to the latest surveys of business confidence and economic forecasts from the British Chambers of Commerce (BCC) and the Institute of Directors (IoD).

Service sector activity slowed unexpectedly in April after a volcanic ash cloud that grounded air traffic hit transport firms and uncertainty about the national election dented confidence.

Hopes that the UK pulled out of recession in the final quarter of 2009 were fuelled today after survey figures revealed an eighth month of growth in the key services sector during December.

Strong evidence of recovery in the service sector emerged yesterday, as the Bank of England's Monetary Policy Committee prepared to make its announcement, at noon today, about an extension of its quantitative easing strategy of injecting money into the economy.

Two of the world's most influential investment gurus warned yesterday that financial markets were turning into "bubbles".

When a party leader with every possible advantage staggers to victory at the third time of asking, trailing two election defeats in his wake, it's clear that politics have stagnated in Greece. George Papandreou has finally succeeded in following his father and grandfather in becoming prime minister but it's an empty victory that will be met with little enthusiasm.

Activity in the services sector rose to a two-year high in August, giving a boost to optimistic forecasts for the UK's recovery from recession.