U.K. factories saw domestic and export demand strengthen in the third quarter and expect to accelerate hiring in the next three months, according to the the British Chamber of Commerce.
Measures of manufacturers’ export sales and orders rose to the highest since the fourth quarter of 2010, the BCC said in a report published in London today. An index of domestic sales in the quarter increased, while companies’ employment expectations advanced to a record.
The report, which also showed an improving jobs outlook in the services industry, may reinforce the view that the economic recovery will continue to strengthen. BCC Chief Economist David Kern said third-quarter growth may have accelerated to as fast as 1 percent from 0.7 percent in the previous three months and he expects to raise his full-year forecast.
“It’s clear that the U.K. upturn is gathering momentum,” Kern said in a statement. “Growth will continue, but it is likely to slow slightly following this recent spurt. External shocks from the U.S. shutdown, possible debt default and tapering, and continued risks elsewhere in the world could all impact on our fragile recovery.”
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