At 52.6 in August, the Composite PMI Output Index posted in expansion territory for the 18th month in a row.
Country's economy grew at an annual rate of 5.0 per cent last quarter, its slowest in more than six years and significantly lower than 5.7 per cent predicted in a Reuters poll.
The survey added to questions over Britain's ability to bounce back from an economic contraction in the second quarter when a hangover from the stockpiling boom before the original Brexit deadline in March hit output.
Although not an official measure of the UK's Gross Domestic Product (GDP), the IHS Markit/CIPS surveys are a robust indicator of how confident businesses are about their current economic prospects.
The warning comes after the economy shrank in the three months to June, marking the first quarterly decline since 2012.
Growth projections now sit at the lowest level since July 2016 and margins were also squeezed as the sector fought for business through competitive price cutting.
The outcomes had been revealed as a part of the IHS Markit/ CIPS UK providers PMI survey the place something under a 50 is seen by insiders as a sector in reverse.
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Manufacturing PMI dropped to a 15-month low in August.
Chris Williamson, chief business economist at IHS Markit, said, "Business activity in the service sector nearly stalled in August as Brexit-related worries escalated, curbing spending by both businesses and consumers".
IHS Markit said the PMI readings for the United Kingdom services sector so far this calendar year are the weakest since 2008, when the global financial crisis erupted.
Put together, the growth of Indian private sector activity eased from July's eight- month high, reflecting a slowdown in new business gains.
"The PMI surveys are so far indicating a 0.1% contraction of GDP in the third quarter".
According to the survey, which is monitored by the government and the Bank of England for early warning signs from the economy, meagre growth in the service sector failed to offset sharp declines in manufacturing output and construction activity last month.
Similarly, the growth of aggregate new orders moderated from July and was modest.
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