In its latest release the British Chambers of Commerce (BCC) said that its Quarterly Economic Survey (QES) provides further evidence that the U.K. economy is growing at a solid pace. The organization believes that the economy could even strengthen in the short term, particularly when the manufacturing sector is up.
The Q4 survey from BCC which is made up of responses from nearly 8,000 businesses, according to the organization shows improvements in most areas for both the manufacturing and services sectors. In its release the BCC admitted that all key balances are stronger than their long-term historical averages.
Manufacturing Sector is Faring Better than Expected
In the released BCC admits that in the manufacturing sector, five key balances are at all time highs. Additionally, as exports in the services sector continue to break new ground, the national economy will gain strength gradually this year. However, the organization believes that to sustain the existing growth the recovery must be maintained.
The BCC admits that as risks persist around access to finance for firms looking to expand, and rectifying this is vital in moving our economy from being merely good to being truly great. Nonetheless, positive results from the BCC Quarterly Economic Survey (QES), which it released yesterday, suggest that GDP growth in Q4 2013 could be 0.9%.
U.K. Recovery Likely to Continue Says David Kern, Chief Economist at the BCC
In the release David Kern, Chief Economist at the BCC said that with most key balances in this quarter, higher than their pre-recession levels in 2007, it is clear that the U.K. recovery is likely to continue to strengthen in the short term. According to him, considering the latest data it looks that GDP growth in Q4 could well be around 0.9%.
He also expects that the impetus given by the manufacturing sector in 2013 will continue even in 2014. According to him, the strong export and investment balances confirm that business is set to play a key role in rebalancing the economy. However, he also believes that it is vital to prevent setbacks as the economic recovery gathers pace.
On the other hand, John Longworth, director general of the BCC, commented that it is fantastic to start the New Year with a very positive quarterly survey. He believes that confidence is high and the members are resolute in their determination to take the recovery from being good to being truly great.
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