Economy grows by 0.2 per cent but long-term picture still uncertain - Chamber
Long-term projections for the UK economy remain uncertain despite a return to growth in August, business leaders said today.
The Office for National Statistics said the economy expanded by 0.2 per cent in August, following a sharper than expected fall the previous month.
According to the ONS, the services sector was the main contributor to growth in August, while car manufacturing and sales boosted the longer-term economy.
The education sector also recovered from strike action. Although schools are on holiday in August, the ONS measures the education sector's contribution to the economy over the year as a whole.
Raj Kandola, director of external affairs at Greater Birmingham Chambers of Commerce, said: “This morning’s GDP results revealed a mixed picture as activity picked up in August having seen a slowdown in July as rail strikes and bad weather had a direct impact on output.
“Nevertheless, long-term projections for growth remain unclear as businesses grapple with record labour shortages, elevated interest rates and sky-high levels of inflation.
“Many firms up and down the country are still reeling from the PM’s decision to scale back on HS2 and will be hoping the Chancellor uses the upcoming Autumn Statement to set out a blueprint for growth.
“Reducing upfront costs for businesses, easing recruitment challenges and tackling trade barriers with our European counterparts will need to figure prominently if we are to restore much needed confidence to the business community.”
“Following the launch of our newly formed Business Commission West Midlands, we will also be speaking to businesses to identify the growth opportunities that lie at the heart of the region and the intervention required from local, regional and national stakeholders to drive prosperity.”
