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Growth still too weak in UK, says BCC
General News |
05/07/2012
Economic growth remains too weak in the UK, the British Chambers of Commerce (BCC) has claimed.
The organisation's Q2 Quarterly Economic Survey indicates that while businesses are growing, the pace is sluggish and inadequate for a sustainable recovery.
Many of the industry balances are in positive territory, pointing towards growth, however they are still below levels seen before the recession in 2007.
The home deliveries balance for manufacturing fell three points to +9 per cent, and in services remained the same as Q1 at +10 per cent.
The balance of manufacturing firms reporting an increase in forward-looking domestic orders rose two points to +8 per cent, but in services fell two points to +5 per cent.
On the positive side, balances measuring exporting activity rose seven points to +31 per cent in manufacturing, and eight points to +24 per cent in Q2 2012.
The BCC found that confidence among businesses remains lower than before the recession in 2007.
In manufacturing, the balances measuring confidence in turnover and profitability rose, but in services, both balances remain unchanged on the last quarter.
John Longworth, director general of the BCC, said that while domestic growth continues to bump along the bottom, the "silver lining" is an increase in firms looking for export opportunities.
"Economic growth should be the government’s main priority. As the eurozone crisis rumbles on, businesses are feeling the effects, and so growth is still weak," he stated.
Mr Longworth offered the view that growth "cannot wait" and the government needs to take "an imaginative and brave approach" to stimulating the economy and helping businesses thrive.
He commented that headline grabbing U-turns on fuel duty are "not enough to get the economy back on track".
"There must be a relentless determination to deliver Whitehall policies on the ground," he stated.
Posted by John Lynes
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