A survey undertaken by the Confederation of British Industry (CBI) showed that the UK economy experienced a sharp slowdown in the three months up to June.
The CBI growth indicator, calculated from a poll of over 750 private sector firms across the manufacturing, retail and services sectors, showed a 14% increase in the three months to June, down from 33% in May.
While manufacturing growth gained some momentum in June, the pace of growth in business and professional services lost steam.
Despite the slowdown, private sector businesses remained optimistic of the future, with over 32% of respondents anticipating growth to bounce back over the next three months.
The index is calculated as the difference between the percentage of respondents reporting an increased output minus the percentage reporting decreased output.
"Despite an easing in performance this month, activity over the quarter as a whole has been good," said Rain Newton-Smith, director of economics at CBI.
"We expect the economy to sustain a solid pace of growth over the remainder of the year as lower oil prices and inflation continue to boost real incomes and consumer spending."
However, British exporters faced major hurdles as a result of the stronger pound and weak global demand, she warned.
"And whatever the results of the referendum in Greece, we urge Eurozone leaders to move quickly towards a deal that underpins both growth and financial stability," Newton-Smith added.
Earlier this week, the UK's Office for National Statistics revised up the country's economic growth for the first quarter to 0.4% from a previous estimate of 0.3%.