The British Chamber of Commerce (BCC) says the UK economy continued to grow in the second quarter of this year, but warns the country must not "kid" itself the recovery is secure.
Based on data collected from 5,600 businesses across the UK, the organisation predicts growth for the three months to the end of June of between 0.6% and 0.7%.
However, it warns serious concerns over a sustained recovery remain.
David Frost, director general of the BCC, says: "With very austere times ahead, no one should kid themselves into thinking that the UK's economic recovery is totally secure."
According to the BCC, the service sector presents the biggest concern.
The BCC's members reported sluggish growth in retail and services, which account for around three quarters of the country's GDP.
Another, more tangible, problem was the rising cost of raw materials, cited by 80% of its manufacturing members as putting pressure on prices.
Set against that, manufacturing export sales rose to their highest level in almost four years, largely thanks to what the BCC called a "more competitive exchange rate".
Employment also rose within the manufacturing sector.
The survey comes two days before the Bank of England's Monetary Policy Committee,is due to give its latest interest rate decision.
Follows McVey's resignation
Schroders and Aviva Investors
LightTower Partners, Seneca Partners and Unicorn AM
Integration with Money Dashboard
View from the front row