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The Derbyshire and Nottinghamshire Chamber of Commerce said the shock drop in Gross Domestic Product (GDP) has “heightened concerns” for the region’s economy. The chamber’s comments come as the Office for National Statistics (ONS) revealed that GDP had decreased by 0.5 per cent in the fourth quarter of 2010.

This compares with an increase of 0.7 per cent in the previous quarter.

Severe weather has been blamed for the UK economy shrinking during the last three months of 2010. The shock decline of 0.5 per cent in GDP has raised fresh fears of a double-dip recession.

The ONS blamed the winter snow for the poor performance.

George Cowcher, chief executive of the Derbyshire and Nottinghamshire Chamber of Commerce, said: “Nationally, the fall in fourth quarter GDP is well below everybody’s expectations and heightens concerns surrounding the strength of the UK’s economic recovery, particularly given that even before the effects of December’s cold snap are taken out of the equation, growth was flat.

“However, locally the economy is still relatively robust, with manufacturers in particular reporting increased sales and orders, plans to invest and improved confidence in future profits and turnover. The service sector, however, needs to be mindful of the future effects of cuts in public spending and plan accordingly to mitigate their exposure.

"Business is ready to drive the recovery, but it can only do so if all the obstacles which hamper firms in their efforts to create jobs, invest and export are removed.”