Business investment in the third quarter of the year declined 3% from the previous three months and is 21% lower than the third quarter of 2008, according to data released by the Office for National Statistics (ONS).

The ONS revealed that the amount of business investment in the third quarter of the year was £28m. This is a smaller fall than in previous quarters but the persisent decline is a worry for businesses.

"The further decline in business investment highlights the challenges and risks facing the economy over the next few years. Despite this fall being smaller than in previous quarters, the downward trend is alarming," said David Kern, chief economist at the British Chambers of Commerce.

"Although companies - in the face of low demand and weak bank lending - were forced to cut investment in order to survive, it is crucial to reverse the falls so business can respond to increased demand when the recovery gathers momentum."