Economic growth ‘stalling’, BCC warns
The British Chambers of Commerce (BCC) has warned that UK economic growth is ‘stalling’ amid a ‘manufacturing slowdown’.
The BCC’s latest Quarterly Economic Survey revealed that the balance of manufacturing firms reporting improved domestic orders fell to a seven-year low. The balance of businesses reporting an increase in export sales also fell to a three-year low.
Brexit uncertainty, rising business costs and ‘tougher global trading conditions’ are adversely affecting the UK economy, according to the BCC.
However, a significant number of services sector firms reported higher domestic sales and orders.
Commenting on the findings, Suren Thiru, Head of Economics at the BCC, said: ‘These results indicate that underlying economic conditions in the UK remain decidedly downbeat, with intensifying uncertainty over Brexit, the rising costs of doing business in the UK and a sluggish global economy combining to suppress key drivers of growth.
‘The manufacturing sector endured a challenging quarter with the downward pressure from the running down of excess stock, tougher global trading conditions and rising upfront costs driving a deterioration in a number of the key indicators.’