27/02/13

Small firms welcome GDP upward revision

Small firms have hailed the tiny upward revision of 2012 GDP figures as a further “tentative” sign of optimism.

Although - 0.3% growth in the last three months of last year stayed the same, Office for National Statistics’ figures for the year show that GDP grew by 0.2% instead of the zero originally claimed.

Manufacturing output in the last quarter of 2012 was revised marginally upwards from -1.5% to - 1.3%.

Although these are hardly stunning changes, Roger House, chairman of the Federation of Small Businesses for Kent and Medway, said the revision of the full year figure was “good news for Kent’s small businesses.”

He added: “The FSB believes today’s announcement indicates further tentative signs of the optimism reported by members in out autumn Kent Small Business Barometer.”

He called on the Chancellor to keep up he momentum in the March 20 Budget.

That meant opening up access to finance and encouraging more small businesses across the county to look at overseas markets as an opportunity to grow.

But the British Chambers of Commerce, which has Kent members, said the quarterly figure showed the UK’s economic picture remained weak.

John Longworth, BCC director general, said: “These figures, coupled with the recent downgrade of the UK’s credit rating, confirm that action must be taken quickly to get the economy growing again.

"The Chancellor should seize the opportunity in next month’s Budget to be radical, and introduce measures that create an environment of enterprise, stimulate export growth, kick-start infrastructure projects and create a structure of business finance which supports growing companies.”