Business Body Claims UK Economic Growth is Unbalanced in 2015
British Chambers of Commerce says economy “still faces obstacles on the path to sustainable, long-term growth” as domestic sales and exports decrease
Businesses across the UK witnessed a drop in growth of domestic sales and exports in the first three months of 2015, according to the British Chambers of Commerce’s (BCC) health check of 7,500 companies.
The manufacturing and services industries appear to be the hardest hit, with manufacturing dropping from +38% in the final quarter of 2014 (October to December) to +27% at the end of 2015’s first quarter (January to March); and the service sector dropping from +33% to +28% in the same period.
The report suggests that the British economy still has some way to go, despite the Confederation of British Industry’s (CBI) Growth Indicator predicting earlier this week that it will continue to gather strength after reporting a growth of 0.7% in the three months of 2015.
According to the CBB the economy is still growing “steadily” but businesses need to be prepared and invest more into growth, with BCC director general John Longworth calling the findings “a salutary reminder that the UK still faces obstacles on the path to sustainable, long-term growth”.
“It is not a huge surprise to see slightly weaker numbers at the start of the year, after a very strong fourth quarter for many firms. Crucially, our survey demonstrates that businesses remain optimistic, though they expect to grow at a slightly slower rate over the coming months.
“Given that all parties agree that the UK needs to strengthen its trade performance, and that we need to encourage our businesses to invest more, these should be issues that unite – rather than divide – the parties over the weeks ahead.”