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BCC: UK upturn is gathering momentum | BCC: UK upturn is gathering momentum |
(about 2 hours later) | |
UK companies saw sales and optimism jump in the third quarter, according to the British Chambers of Commerce (BCC). | UK companies saw sales and optimism jump in the third quarter, according to the British Chambers of Commerce (BCC). |
Service firms saw UK sales and orders rise at the fastest pace since 2007, while the rises for manufacturing were the sharpest since the early 1990s. | |
"It's clear that the UK upturn is gathering momentum," said David Kern, BCC chief economist. | "It's clear that the UK upturn is gathering momentum," said David Kern, BCC chief economist. |
But a British Retail Consortium survey showed UK retail sales slowed for a second consecutive month in September. | |
"These figures are a reality check and will make retailers nervous as we enter the run up to Christmas," said David McCorquodale, head of retail at KPMG, which helped compile the BRC data. | |
Jobs growth | |
The British Chambers of Commerce said the results of its quarterly survey mean that it was likely to revise up its GDP forecasts for 2014. | |
The quarterly survey is based based on responses from 7,400 companies, making it the UK's largest business survey. | The quarterly survey is based based on responses from 7,400 companies, making it the UK's largest business survey. |
On the basis of the results, the BCC estimates that GDP growth will be in the region of 0.9% and 1% in the third quarter. | On the basis of the results, the BCC estimates that GDP growth will be in the region of 0.9% and 1% in the third quarter. |
The survey reported that employment prospects are brighter. A balance of 26% of services firms planned to increase staffing in the next three months, the highest reading since 2007. | The survey reported that employment prospects are brighter. A balance of 26% of services firms planned to increase staffing in the next three months, the highest reading since 2007. |
For manufacturing, the reading was 29%, the highest since the survey began in 1989. | For manufacturing, the reading was 29%, the highest since the survey began in 1989. |
The BCC's director general, John Longworth, said in a statement: "It is fantastic to see our small yet dynamic manufacturing sector doing so well, with our results suggesting a recent growth spurt. | The BCC's director general, John Longworth, said in a statement: "It is fantastic to see our small yet dynamic manufacturing sector doing so well, with our results suggesting a recent growth spurt. |
"However, we need to ensure that this does not become an aberration, but rather the norm, particularly when the economic recovery is still facing external risks." | "However, we need to ensure that this does not become an aberration, but rather the norm, particularly when the economic recovery is still facing external risks." |
He said that levels of investment were still a concern, and that more support was needed for exporters through increased trade promotion and better access to finance. | He said that levels of investment were still a concern, and that more support was needed for exporters through increased trade promotion and better access to finance. |
"The Government mustn't get distracted, and has to put growth first at all times," Mr Longworth said. | "The Government mustn't get distracted, and has to put growth first at all times," Mr Longworth said. |
"We will be looking ahead to the Autumn Statement in the hope that the chancellor uses this opportunity to make a real difference and go all out in the name of growth," he said. | |
'Cautious consumers' | |
Meanwhile, the BRC data showed that like-for-like sales - which strip out changes in floor space as retailers open and close outlets - rose 0.7% in September. This was less than half the rate of growth of the previous two months. | |
Grocery sales showed a weak performance in September, although sales of children's clothing and shoes put in a strong showing, due to the tail-end of the traditional back-to-school spending spree. | |
The BRC said that a slowdown in food and drink sales reflected the tough battleground for market share. And the warm weather had also put people off spending on winter clothes. | |
"Consumers are still cautious about spending and are reluctant to restock their wardrobes with winter woollies until the weather cools," Mr McCorquodale said in a statement. | |
The survey underlines that some sectors remain weak, despite a recent run of strong economic data. | |
Some of Britain's biggest retailers, including Morrisons and Next, remain cautious about the strength of the UK recovery. |
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