Official data released on Friday revealed that UK business investment managed to fall to its lowest level in nearly 10 years during the year's fourth quarter, suggesting that companies have very little confidence in the economic outlook even with the country now emerging from recession.

While the figures have managed to raise some serious doubts on the strength of the economic recovery, they were drawn from a preliminary estimate and might just fuel some hope that the fourth-quarter economic growth was at least stronger than the present estimate of 0.3%.

Over the last three months of 2009, business investment totaled to 27.3 Billion Pounds ($40.45 Billion), which is the lowest figure recorded since the same quarter of 2000, as was revealed by the Office for National Statistics. The total invested is 4.3% lower than the number recorded for the previous quarter, and 24% lesser than the same quarter for 2008.

"The sharp overall decline in business investment suffered so far may well have already had serious damaging repercussions for the economy's potential output, not only through capacity being lost but also through companies not investing in the latest, most efficient technology and processes", said Howard Archer, Chief U. K. and European Economist at IHS Global Insight.