Ananova:

Hopes of a return to recovery have been fuelled after a survey showed the services sector growing at its fastest rate for more than two years.

The Chartered Institute of Purchasing and Supply's (CIPS) activity index showed its strongest reading last month since September 2007.

Where a score over 50 indicates growth, the activity registered 56.9 for October.

The figure means the economy has shown sixth successive months of growth, according to CIPS.

However, experts urged caution.

The services sector failed to pull Britain out of recession between July and September as had been expected.

GDP figures for the period showed the economy shrank by 0.4%.

CIPS said there were signs of greater confidence among clients to commit to previously delayed spending plans, although job losses continue to rise steeply.

Firms' input costs are also coming under pressure from higher fuel bills and a weaker exchange rate for imports, it added.

Chief executive David Noble said: "We can't forget that these are rocky times.

"Despite another round of cost inflation, firms are working hard to secure new business wins by squeezing output prices further. Growing levels of unemployment are another reminder of how difficult things still are."

Capital Economics' Vicky Redwood warned that "rapid rates of growth" were "unlikely".