BCC survey suggests worrying outlook for UK economy

| April 5, 2011 | 0 Comments

According to the latest Quarterly Economic Survey from the British Chambers of Commerce (BCC), the recovery remains fragile.

The survey, which polled 6,000 firms, found that companies still face cash flow problems and 80% of manufacturers said the cost of raw materials means they are under pressure to lift prices.

The manufacturing sector has been one of the bright spots in the UK economy and while it still has the ability to drive the recovery, pricing pressures are posing a threat.

The overall picture is worrying, according to the BCC, who said:” our economy faces a difficult year and the recovery will be choppy.”

However, the survey indicates that the economy returned to growth in the first quarter - after a shock contraction in the previous quarter, attributed to the bad weather in December.

The Office for National Statistics (ONS) will publish its first estimate of quarter one growth on 27 April.

Commenting on the findings of the survey, David Frost, director general of the BCC, said: “Exporting activity remains strong, but there have been sharp declines in confidence.

“While the Government has listened to calls to help the private sector create growth, there is more to be done in giving businesses greater confidence, and encouraging them to export, invest and create more jobs,” he added.

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