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UK economy in good health, business lobby groups say | |
(about 9 hours later) | |
The UK economy is in good health according to two major business lobby groups, the CBI and the British Chambers of Commerce (BCC). | |
The CBI says growth reached a record high in May, marking the best reading since it began gathering data in 2003. | The CBI says growth reached a record high in May, marking the best reading since it began gathering data in 2003. |
Meanwhile, the BCC upgraded its growth forecast for 2014 from 2.8% to 3.1%, which, if achieved, would be the highest rate since pre-crisis 2007. | Meanwhile, the BCC upgraded its growth forecast for 2014 from 2.8% to 3.1%, which, if achieved, would be the highest rate since pre-crisis 2007. |
That figure is well above the 2.7% forecast by the OBR. | That figure is well above the 2.7% forecast by the OBR. |
The OBR, or Office for Budget Responsibility, is the government's independent fiscal watchdog. | The OBR, or Office for Budget Responsibility, is the government's independent fiscal watchdog. |
Strength across the board | Strength across the board |
Latest official figures showed that the UK economy grew by 0.8% in the first three months of 2014. | |
The CBI's growth report suggests the UK economy has continued to perform strongly in the second quarter of this year. | The CBI's growth report suggests the UK economy has continued to perform strongly in the second quarter of this year. |
Stronger economic performance was seen across the board, it said. | |
Sectors including retail sales and professional and consumer services did well in the three months to May, while manufacturing output continued to grow at a "solid pace". | |
Andrew Graham, the chief executive of wallpaper manufacturer Graham & Brown, told the BBC he was cautiously confident: "The economy is improving, but that is from a very low base. | |
"I think we are just starting to see recovery. As a business, we have starting investing seriously again over the last 12 months." | |
UK still 'exposed' | UK still 'exposed' |
CBI deputy director-general Katja Hall said the improvement was down to increased confidence in the UK economy, easier access to credit, and better global economic conditions. | |
However, Ms Hall said there were risks to the UK's outlook from global developments, including the "possibility that the situation in Ukraine and Russia could impact on global commodity prices". | However, Ms Hall said there were risks to the UK's outlook from global developments, including the "possibility that the situation in Ukraine and Russia could impact on global commodity prices". |
She added: "With the eurozone crisis still far from being fully resolved, the UK continues to be exposed to a prolonged period of subdued activity in the region." | She added: "With the eurozone crisis still far from being fully resolved, the UK continues to be exposed to a prolonged period of subdued activity in the region." |
The BCC also said the economic recovery was not guaranteed. | The BCC also said the economic recovery was not guaranteed. |
John Longworth, the BCC's director general, said: "Our forecast confirms that Britain is leading, rather than following, other major economies when it comes to short-term growth, which is great news. | John Longworth, the BCC's director general, said: "Our forecast confirms that Britain is leading, rather than following, other major economies when it comes to short-term growth, which is great news. |
"But make no mistake - we still have a lot of work to do." | "But make no mistake - we still have a lot of work to do." |
He added that the UK was "overly reliant on consumer spending" as a driver of growth. | He added that the UK was "overly reliant on consumer spending" as a driver of growth. |
Are you a business-owner? Is the UK economy in good health? What are your your experiences? You can email your stories to haveyoursay@bbc.co.uk using 'business' in the subject. |