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| Version 2 | Version 3 |
|---|---|
| UK economy deteriorating, says BCC | UK economy deteriorating, says BCC |
| (about 2 hours later) | |
| The UK economy deteriorated in the third quarter and is showing signs of stagnation, according to the British Chambers of Commerce (BCC). | The UK economy deteriorated in the third quarter and is showing signs of stagnation, according to the British Chambers of Commerce (BCC). |
| The BCC says cashflow remains a real concern for many of the 6,700 businesses it surveyed. | The BCC says cashflow remains a real concern for many of the 6,700 businesses it surveyed. |
| Its director general, John Longworth, said recession could be avoided, but only through making "tough choices". | Its director general, John Longworth, said recession could be avoided, but only through making "tough choices". |
| The BCC has downgraded its forecast for UK economic growth three times. | The BCC has downgraded its forecast for UK economic growth three times. |
| Its expects the economy to expand by just 1.1% in 2011, compared with 1.9% at the start of the year. | Its expects the economy to expand by just 1.1% in 2011, compared with 1.9% at the start of the year. |
| Last week, official figures showed the UK economy grew by 0.1% between April and June, less than the 0.2% estimated previously. | Last week, official figures showed the UK economy grew by 0.1% between April and June, less than the 0.2% estimated previously. |
| The Office for National Statistics also revised down growth in the first three months of the year from 0.5% to 0.4%. | The Office for National Statistics also revised down growth in the first three months of the year from 0.5% to 0.4%. |
| Slow recovery | Slow recovery |
| The BCC said the domestic market, exports, confidence, cashflow and investment in plant and machinery had all weakened over the past three months. | The BCC said the domestic market, exports, confidence, cashflow and investment in plant and machinery had all weakened over the past three months. |
| The balance of manufacturers creating new jobs fell, while in the services sector there was only a marginal increase in employment. There was little optimism in either sector about future recruitment. | The balance of manufacturers creating new jobs fell, while in the services sector there was only a marginal increase in employment. There was little optimism in either sector about future recruitment. |
| Mr Longworth said: "The pace of the UK recovery will remain slow. We can avoid a recession but this relies on the government making some tough policy choices. | Mr Longworth said: "The pace of the UK recovery will remain slow. We can avoid a recession but this relies on the government making some tough policy choices. |
| "While it is imperative that the government perseveres with its deficit-cutting plan, there must be a significant reallocation of priorities within the overall spending envelope." | "While it is imperative that the government perseveres with its deficit-cutting plan, there must be a significant reallocation of priorities within the overall spending envelope." |
| Sales 'weak' | Sales 'weak' |
| Meanwhile, a separate survey from the British Retail Consortium (BRC) showed some retailers were hard-hit by the unusually hot weather last month. | Meanwhile, a separate survey from the British Retail Consortium (BRC) showed some retailers were hard-hit by the unusually hot weather last month. |
| Clothing retailers - which are currently offering clothes for autumn and winter - saw their biggest sales drop in two years, although food sales were helped as people stocked up on goods for the barbecue. | Clothing retailers - which are currently offering clothes for autumn and winter - saw their biggest sales drop in two years, although food sales were helped as people stocked up on goods for the barbecue. |
| However, overall like-for-like sales were up by 0.3% in September from a year ago. | However, overall like-for-like sales were up by 0.3% in September from a year ago. |
| For the July to September quarter, non-food sales were down 1.4% while food sales rose 2.1%. | For the July to September quarter, non-food sales were down 1.4% while food sales rose 2.1%. |
| Stephen Robertson, the BRC's director general, said: "In these harsh times, we have to be thankful for this minor improvement in growth compared with August but underlying conditions remain weak. | Stephen Robertson, the BRC's director general, said: "In these harsh times, we have to be thankful for this minor improvement in growth compared with August but underlying conditions remain weak. |
| "Spending growth is below inflation meaning customers are buying less than this time last year. And there's no guarantee next month's figure will be better." | "Spending growth is below inflation meaning customers are buying less than this time last year. And there's no guarantee next month's figure will be better." |
| On Monday, a separate survey from accountancy group BDO also found that the recent hot weather had hit UK retail sales. | On Monday, a separate survey from accountancy group BDO also found that the recent hot weather had hit UK retail sales. |
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