Despite strong company results from a variety of sectors, gloom surrounding prospects for UK growth enveloped the UK’s leading index.

Fresh fears over the government’s austerity measures have put the dampeners on things, as both the services and construction sectors experienced a slowdown in growth last month.

Many are concerned that with the looming spending cuts and VAT rise consumers will be less likely to put their hands in their pockets. This view was echoed by Next, which currently leads this morning’s losers.The high-street chain noted that consumer demand has cooled recently with the store trading at 2047p (-6.91%).

Elsewhere in companies, Lloyds Banking Group has returned to profit, coming in at £1.6 billion in the black as opposed to £4 billion in the red for the same period last year. This follows a run of promising results for the sector as both HSBC and – surprisingly – Northern Rock posted profits.  Leading the pack is African Barrick Gold which is trading at 553p (+1.93) followed by Shire Plc (+1.02%). Despite these positive results it seems like it will take something special to break the fog of a slowing economy.