Economy returns to growth but firms still feel the squeeze - Chamber

Economic growth remains “stuck in the slow lane ” despite an upturn in activity during April, business leaders said today.

According to the Office for National Statistics (ONS), UK gross domestic product rose by 0.2 per cent, as rising car sales and customers spending in pubs and bars helped output to recover from a wave of public sector strikes in the previous month.

Fuelled by an increase in consumer spending in the country 's dominant services sector, the rise in activity was partly offset by a dip in health sector output, which was affected by junior doctors ' strikes.

Activity also fell in computer manufacturing and the pharmaceuticals industry.

More broadly, GDP grew by 0.1 per cent over the three months to April, lifting Britain 's economy marginally above pre-pandemic levels.

However, Greater Birmingham Chambers of Commerce warned businesses and households are still feeling squeeze.

Director of external affairs Raj Kandola (pictured) said the onus is on Government to help firms bring down costs and fill job vacancies.

He said: “Whilst we saw a slight upturn in activity in April, it 's clear that the UK economy remains stuck in the slow lane for growth.

“Fuelled by consistent wage rises, gilt yields have now surpassed the level we saw in the aftermath of last year 's infamous Mini Budget - it feels inevitable that the Bank of England will respond by hiking interest rates which in itself will have a knock-on impact on the purchasing power of both households and businesses.

“In particular, data from our latest Quarterly Business Report revealed the squeeze that businesses are facing as price pressures continue to bite.

“The onus is now on Government to deliver a plan which will bring down energy costs, help to fill vacancies and make it easier for our businesses to trade with their overseas counterparts. ”

Greater Birmingham Chambers of Commerce will be discussing the latest economic trends at our upcoming Q2 Quarterly Business Report launch event.