British Chamber of Commerce Cuts Growth Forecast

A business group has downgraded its forecast for UK growth this year in what it says is a warning sign in the struggle to achieve a sustainable recovery.

The British Chambers of Commerce (BCC) expects gross domestic product to increase by 3% for 2014, down from a previous outlook of 3.2%.

It would still be the best growth since before the recession, but has been cut from the previous forecast because of weaker-than-expected performances from the dominant services sector as well as household consumption and exports, the BCC said.

The third-quarter performance of the economy, when it grew by 0.7%, was weaker than expected and down from 0.9% in the second quarter.

The BCC also revised its forecast for 2015 from 2.8% to 2.6% and for 2016 from 2.5% to 2.4%.

The business group’s director general, John Longworth, said the 2014 figure would still put Britain ahead of international competitors for growth this year.

But he added: “Downgrades to our growth forecast are a warning sign that we still face a number of hurdles to securing a balanced and sustainable recovery.

“A number of headwinds from the global economy are also having a real impact on British businesses.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza