This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-22723384

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
British Chambers of Commerce raises UK economy forecast British Chambers of Commerce raises UK economy forecast
(about 9 hours later)
A major business group has upgraded its long-term growth forecasts for the UK economy over the next three years.A major business group has upgraded its long-term growth forecasts for the UK economy over the next three years.
But the British Chambers of Commerce (BCC) warns that growth is still too weak and that the economy faces domestic and overseas challenges.But the British Chambers of Commerce (BCC) warns that growth is still too weak and that the economy faces domestic and overseas challenges.
The BCC said it expected output to increase by 0.9% this year, up from a previous growth prediction of 0.6%.The BCC said it expected output to increase by 0.9% this year, up from a previous growth prediction of 0.6%.
It sees gross domestic product (GDP) for 2014 being raised from 1.7% to 1.9%, and for 2015 from 2.2% to 2.4%.It sees gross domestic product (GDP) for 2014 being raised from 1.7% to 1.9%, and for 2015 from 2.2% to 2.4%.
"The upward revision in our growth forecasts is encouraging," said BCC director general John Longworth."The upward revision in our growth forecasts is encouraging," said BCC director general John Longworth.
"Unfortunately, this does not change the fact that economic growth is still too weak and the pace of recovery will remain unduly slow for a while yet." He told the BBC that many businesses were telling him conditions were not too bad.
And the body called on Chancellor George Osborne to use next's month's government spending review to "help create the right conditions to boost enterprise, so that businesses can invest, export, create jobs and drive the recovery". "Businesses tend to say 'we're doing OK'," he said. "Businesses are in fact doing OK - not great, but OK."
However, he said economic growth was still too weak and the pace of recovery would remain unduly slow for a while yet.
Cut welfare
The BCC called on Chancellor George Osborne to use next's month's government spending review to "help create the right conditions to boost enterprise, so that businesses can invest, export, create jobs and drive the recovery".
Mr Longworth made a plea for the government to start spending more on capital projects, saying the money could be found from what he called "unnecessary" welfare spending.
The BCC represents 104,000 business members with more than five million employees,The BCC represents 104,000 business members with more than five million employees,
In its economic forecast, it also says the services sector, which takes up the major share of the economy, is likely to outperform other areas.In its economic forecast, it also says the services sector, which takes up the major share of the economy, is likely to outperform other areas.
The outlook boost comes after the Bank of England recently forecast that growth would be a little stronger. But this week, the Organisation for Economic Co-operation and Development cut its prediction from 0.9% to 0.8% for the year. The BCC's upgraded outlook comes after the Bank of England recently forecast that growth would be a little stronger. But this week, the Organisation for Economic Co-operation and Development cut its prediction from 0.9% to 0.8% for the year.