Markit/Cips purchasing managers' index for services dropped to 53.8 from 56 in January
Growth in Britain's services industries slowed more than expected last month, but confidence among firms hit a one-year high.
The Markit/Cips purchasing managers' index for services, released on Monday, dropped to 53.8 from 56, which had been a 10-month peak, in January.
It remained well above the 50 mark that separates growth from contraction, indicating that the UK economy will return to growth this quarter. City economists had expected a smaller dip, to 54.9.
At the same time, confidence about the year ahead climbed to the highest level in 12 months, with more than half of services firms voicing optimism about their prospects against one in 10 who were downbeat. Employment also edged higher.
The performance of the UK services sector contrasts with that of the eurozone. Separate data, released on Monday, showed the eurozone services sector contracted last month, in a blow to hopes that the region will avoid slipping back into recession.
Alan Clarke, an economist at Scotiabank, said the UK PMI data was "disappointing, but not the end of the world".
"Overall, the PMIs are consistent with a moderate pace of expansion in overall GDP – broadly in line with what the Bank of England has assumed," he added.
Other PMI releases last week showed that UK manufacturing also slowed last month while construction output grew at the fastest face in nearly a year.
Taken together, the surveys suggest the economy will return to modest growth in the first quarter and escape a double dip recession assuming there is no further loss of momentum in March, Chris Williamson, the chief economist at Markit, which compiles the reports, said.
The British economy shrank by 0.2% in the final three months of last year.