UK economic growth slowed towards the end of 2010, according to figures from the British Chamber of Commerce (BCC), sparking fears a recovery is faltering.
BCC estimates show the economy grew between 0.4% and 0.5% in the last quarter, compared with official growth data of 0.7% in Q3.
Weaknesses in the services sector were blamed for the reduced output, and the figure is particularly worrying as the full effects of the VAT increase and deficit cutting measures are yet to feed into the system.
However, the BCC say another recession is unlikely and were buoyed by good export orders and manufacturing levels at their highest point in 16 years.
BCC Director general, David Frost, says: "Faced with public sector cuts and cost pressures, ensuring the health of UK businesses is critical to a sustained economic recovery.
"We call on the government to take concerted action now to ensure recovery continues."
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