Britain’s long economic recovery could be at an end as foreign demand slumped last month, neighbours in the eurozone flirted with recession, and the UK's hiring spree faltered.

Businesses grew at the slowest pace since the wake of the EU referendum in 2016, blaming uncertainty over Brexit as a key factor holding back demand.

New orders dropped for the first time in more than two years. As a result employment may have fallen from recent record highs with businesses increasingly choosing not to replace staff who leave.

The purchasing managers’ index (PMI), an influential survey of the private sector compiled by IHS Markit and the Chartered Institute of Procurement and Supply, fell to 50.3 last month.

Any score of above 50 indicates growth, so this shows business activity barely budged in January.

It is down from 51.4 in December and from 53.4 a year ago.