The British Chamber of Commerce (BBC) described that the economy of the UK started weakening during the third quarter of 2011 and is now displaying signs of declining further.

However, it was reported by the BBC News that the economy grew by 0.1 percent during the second quarter of the year which was 0.2 percent less than the growth in the same period of 2010.

The treasury ministry said these statistics reveal that the country was still on course and that the government was not deviating from its deficit reduction efforts.

A government spokesman announced that "although the nation cannot isolate itself from the adverse effects to principal trading partners of the UK brought about by financial disorder in the euro zone and a anemic point of view for global progress, the economy is still stable.

Data from the manufacturing and service industries will attest to this growth.

The government of Prime Minister David Cameron has been widely criticized for focusing too much on reducing budget deficit and compromising development.

Officials of the chamber of commerce said the "domestic market, exports, confidence, cash flow and investment in plant and machinery have all weakened over the past three months."

The balance of manufacturers creating new jobs went down, while in the services sector there was only an insignificant increase in employment. There was minor buoyancy in either sector about future recruitment.

"While it is imperative that the government perseveres with its deficit-cutting plan, there must be a significant reallocation of priorities within the overall spending envelope," said John Longworth, director general of the BBC.

The International Monetary Fund (IMF) has already warned against imposing drastic budget cuts at the expense of growth.

Longworth added. "The pace of the UK recovery will remain slow. We can avoid a recession but this relies on the government making some tough policy choices.

Meanwhile, the Bank of England has said it will infuse an additional £75bn into the economy through quantitative easing. The Bank has already pumped £200bn into the economy by purchasing assets such as government bonds, in an attempt to boost lending by commercial banks.