It estimates the economy expanded by 0.4%-0.5% in October-December, a slowdown on the latest official growth figure of 0.7% for July-September.
The BCC says the reduced output was a result of service sector weakness.
By contrast, it said manufacturing output was up strongly, led by exports.
The BCC concluded that while a new recession was "unlikely", risks remained.
David Frost, BCC director general, told the BBC: "The manufacturing sector is growing very strongly and is a star performer, but the service sector is undoubtedly acting as a drag.
BBC News - UK economic growth rate slowing, BCC says
Did I read that right, the service sector is flagging but manufacturing is up?? Does that mean we've started making things again and stopped building call centres?
