The UK's economic growth in the second quarter has been revised upwards to 1.2 per cent, which represents country’s fastest quarter-on-quarter expansion since the opening three months of 2001.

But, businesses are still facing looming danger of a double-dip in economic output as the country braces for severe public spending cuts that were announced in the emergency budget in order to hack budget deficit.

Meanwhile, the US economic growth in the quarter to June was revised downwards by the Commerce Department from 2.4 per cent to 1.6 per cent. The downwards revision added to worries about the impetus of the world’s leading economy and the knock-on impact on the UK as well as other countries.

US Federal Reserve chairman Ben Bernanke didn’t announce any explicit measures but he raised the prospect of another purchase of securities to bring rates on mortgages and other debt down.Mr. Bernanke said that the economic outlook was inherently uncertain and that the economy remained exposed to unexpected developments.

Speaking on the issue, Andrew Goodwin from the Ernst & Young ITEM Club said, “The public sector will soon become a drag on growth as austerity measures begin to bite.”

The US woes unveiled a regression in the worldwide recovery and the UK is unlikely to see further gains, mainly due to the austerity measures.