The Markit/CIPS Purchasing Managers' index of the service sector underscored analysts' estimates and slumped to 50.6 in October compared to a reading of 52.2 in September. The index touched the lowest level since December 2010 staying close to the 50 line that determines growth from tension. The service providers repeatedly declined employment in October.
Paring with shrinkage in manufacturing, the data strongly contrasts with the economic upbeat in the third quarter.
"The expectation among firms is for activity to improve over the coming year, but the road to full economic recovery still looks to be a long one," said Andrew Harker, economist at Markit.