The latest economic survey from a leading business group has suggested that business confidence in the UK is at its highest level since 2007. The quarterly survey by the British Chambers of Commerce (BCC) indicated that the UK’s economy is strengthening and there was further good news from the Markit/CIPS purchasing managers’ index, which indicated growth for the second month in a row in June.Following the report, the BCC is now expecting GDP to grow by 0.6% in the second quarter of 2013. This figure is significantly more positive than its previous forecast, which predicted growth of 0.9% for the whole year. This positive prediction is largely down to the services sector, which accounts for about three-quarters of the economy, which is benefitting from rising exports and is continuing to grow. David Kern, the BCC’s chief economist, said “The remarkable export balances show that the service sector is capable of increasing its trade surplus over time and can work to reduce our overall trade deficit.”
The former chairman of Pizza Express, Luke Johnson, said that he believed there was a “real recovery” under way. He added “I think the consistency of all the surveys and statistics coming through over the last six to 12 months is pretty compelling.”
However, BCC director general John Longworth said that he still believes that current growth could be choked off by banks being unwilling to lend the money required. He also added that inflation remained a worry among businesses.The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.Setfords Solicitors are a national full service law firm, with business law solicitors in Loughborough and across the country.