BCC says economy on road to recovery
Fri, 10 Jul 2009
The British Chambers of Commerce (BCC) Economic Survey indicates that the worst of the recession is now over.
According to the study, progress is now being seen in both the manufacturing and service sectors, with most key indicators improving in the last quarter.
Turnover confidence within the sectors increased following sharp declines in the previous two quarters, while employment expectations also saw gains.
Commenting on the findings, BCC director general David Frost said it is "absolutely vital" that the improvement in business confidence is nurtured.
He added: "Our economy is based on confidence, and wealth-creating businesses need to know they will be given the freedom and flexibility to drive the UK out of recession and into a sustainable recovery.
"The government needs to think long and hard about its policies on taxation and red tape, which threaten to stifle growth and employment. The planned increase in National Insurance contributions is nothing more than a tax on jobs and it should be abandoned immediately."
David Kern, chief economist at the BCC, said that although the worst phase of the recession is over, "further corrective measures" are still needed to support the economy.
Yesterday the Bank of England's Monetary Policy Committee decided to hold interest rates at 0.5 per cent and continue with its £125 billion quantitative easing programme.
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