13 Oct 2017
Manufacturing boost fails to rescue UK economy according to BCC
The British Chambers of Commerce (BCC) has conducted their quarterly economic survey, which looks at the responses from 7,100 businesses, showed the British economy didn’t grow as much as expected. This is despite companies in the manufacturing sector reporting sales and orders were at their highest level since the first quarter of 2015.
The director general of the BCC, Dr. Adam Marshall, has requested that the Chancellor, Philip Hammond, encourage the government to show support for business in next month’s budget as Brexit-related uncertainty rapidly increases within the industry.
Dr Marshall said:
“The uninspiring results we see in our third quarter findings reflect the fact that political uncertainty, currency fluctuations and the vagaries of the Brexit process are continuing to weigh on business growth prospects.”
“The Chancellor’s Autumn Budget is a critical opportunity to demonstrate that the government stands ready to incentivise investment and support growth here at home.”
Firms have reported an increase in export sales and orders in the manufacturing sector, as economic growth in some UK markets has added to demand for UK made products.
Read more here:
UK Manufacturing Continues to Grow
In contrast, the service sector, which is normally seen as a huge contributor to the growth of the UK economy, saw domestic orders and sales remain static. Its employment expectations, investment in training and confidence in profitability and turnover have also not seen growth.
Almost three-quarters of manufacturers reported recruitment difficulties, while in the services sector troubles hiring staff were at their highest since the first quarter of 2016.