The service sector in Sussex continued to recover last month, recording robust growth.

A survey by the Chartered Institute of Purchasing and Supply (CIPS) said activity in the sector recorded 55.6 on its index, compared with 55.5 in September.

A figure above 50 indicates growth.

CIPS said the improvement signalled general recovery in business activity which began at the start of the year.

The sector had been hit by the global economic downturn and repercussions of the September 11 terrorist attacks in the United States.

The survey showed transport and communications firms recorded the strongest growth while hotels and restaurants and finance firms were the weakest.

Despite the gains, CIPS said business confidence eased.

There was a contraction in the sector's workforce for the 13th consecutive month.

CIPS said: "With wages and salaries accounting for the largest proportion of firms' costs, and companies still under pressure to cut costs and raise productivity, the latest strong rise in new business failed to prevent further redundancies and the non-replacement of leavers."

Director of professional practice Roy Ayliffe said:

"Business activity remained steady last month.

"However, although new business activity was buoyant, managers protected their margins by holding back on price increases, and maximising productivity."