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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