Partner Article

British Chambers revise growth up, and hail businesses’ determination

The British Chambers of Commerce (BCC) has significantly upgraded its UK growth estimate for the next three years from 0.9% to 1.3%.

The upward revision is due to stronger than expected Q2 results, driven by a strong service sector and household consumption.

Increased exporting activity among BCC members has also been reflected in the reduction of the real trade deficit in goods and services by over half in the last three years.

BCC director general, John Longworth said the positive outlook was testament to businesses’ “steadfast determination” in previous quarters, but also made a warning.

He added: “Unfortunately the recovery is not yet secure. We have had false dawns in recent years and although this upturn appears to be on stronger ground, we must be aware that complacency could lead to setbacks.

“There are many external factors, such as the eurozone, the Middle East, and the Chinese economy that could halt our progress. However our surveys have shown that firms are confident about their prospects and want to expand, but they cannot do it alone.

“Improving access to finance for viable, fast-growing businesses is a major priority, and the government and the MPC must do more to ensure that vibrant SMEs can obtain finance on reasonable terms. The government must also work with the Bank of England and the Treasury to underwrite private sector investment in infrastructure projects, and our ‘have a go’ exporters need support on the ground to help them break into new markets.”

The BCC’s chief economist, David Kern, said the Bank of England’s forward guidance strategy would help provide a more stable economic environment, but suggested the unemployment target would be reached earlier than the committee’s estimation, and that inflation would rise in early 2016.

This was posted in Bdaily's Members' News section by Tom Keighley .