Economic growth is welcome for UK business, says BCC

Monday 29 July 2013

Business

The increase in gross domestic product (GDP) recorded during the second quarter of 2012 is positive for UK businesses, it has been claimed.

According to John Longworth, director general of the British Chambers of Commerce (BCC), things appear to be finally looking up for the UK economy.

He was commenting after the Office for National Statistics (ONS) reported GDP growth of 0.6 per cent during Q2 2013, up 1.4 per cent on the year.

Services, manufacturing and construction all witnessed quarterly growth between April and June, the ONS said.

"The gradual progress made by the UK economy – particularly in the services sector where exports continue to surge – is pleasing to see," Mr Longworth stated.

He said confidence among businesses is "high" when looking ahead to profitability and turnover, and many firms have intentions to take on staff later this year.

"Our surveys are forward looking, compared with the ONS statistics which are retrospective, so our growth predictions could end up being even more optimistic when looking at the remainder of 2013," Mr Longworth noted.

He said UK businesses are feeling upbeat and are capable of expanding.

"More and more are adopting a 'have a go' attitude when it comes to exporting, which is really encouraging as this will go a long way to driving growth further still," the BCC chief stated.

"But strong, sustained growth requires efforts from the government too, as businesses need an enterprise-friendly environment for the economy to go from good to great."

He claimed that new and existing exporters need more support to help them diversify into fast-growing markets.

In addition, access to finance for dynamic, growing businesses must be made more available.

"We must be careful not to choke off the growing optimism and confidence that is coming through, but instead be more proactive in nurturing the modest recovery that is starting to gather pace," Mr Longworth stated.

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Posted by Dan Smith