Growth remains subdued, British Chambers of Commerce warn

The “sunlit uplands” of economic recovery were glimpsed in the last three months but growth remains subdued.

That’s the verdict of the British Chambers of Commerce (BCC) survey for the first three months of the year. Using data from 7,000 firms across the nation, including Kent and Medway, it found that while British businesses are resilient, the situation for many below pre-recession levels and growth remains “too low.”

BCC director-general John Longworth said: “These results provide a glimpse of the as-yet-distant sunlit uplands of recovery. Businesses up and down the country are working hard to drive the economy, create jobs and export, but they cannot accelerate this process alone.”

It says the economy has made progress, but there are still “some mountains to climb before it is fully back on track.”

Exports showed strong growth, with deliveries and orders close to a 19-year high. Business confidence and investment are also up, and cashflow, although still relatively weak, is now positive for both manufacturing and service sector businesses.

But the BCC said it was disappointed that job prospects weakened in the first quarter.

Mr Longworth is urging the government to support business confidence and foster what is likely to be modest but gradual economic growth this year.

“The government should be quick to implement the supply-side measures announced in the Budget to get growth moving, and consider new ways to support business confidence, which has continued to rise. It is clear from our survey that any growth this year will be slow and steady, and it is important that this does not veer off course.”

He called for plans for a business bank to be more ambitious in scale and scope. “Although business supports the government’s plans to shift current spending towards capital investment over the next Parliament, it could go further still to boost growth in the short-term, such as through road maintenance and house building.”

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