Output across the south east has dipped again amid fears of another recession.

That's the stark verdict of the latest Lloyds TSB South East Business Activity Index based on data from purchasing managers.

Private sector output declined for the second month running in November, driven by the first drop in new work since June 2009. Jobs growth slowed to "crawl" as firms cut prices to boost sales. Output prices fell for the fourth successive month.

Worryingly, of seven UK regions recording a fall in new work, the south east posted the fastest rate of contraction.

Phil Beales, area director for Lloyds TSB Commercial in Kent and East Sussex, said: "Business activity across the combined manufacturing and services sectors rose only once in the four months to November, raising the risk of slipping back into recession.

"Although the rate of decline slowed in November, a fall in new business suggested there would be another contraction in December. All this has led to jobs growth in the region slowing to a crawl, while backlogs have declined at the fastest pace for over a year."