Economists at the British Chambers of Commerce predict the United Kingdom economy will avoid falling back into recession after a strong performance by service industries in first three months of year. Edward Baran reports.
Could a glimmer of hope for the UK economy be contained in the pages of this report? Business group the British Chambers of Commerce says a strong performance by Britain's service industries so far this year has kept the economy growing. Not just restaurants and hotels, but also education and IT services, are doing well. Senior economist Suren Thiru. SOUNDBITE, Suren Thiru, British Chamber of Commerce, saying: "The survery which is the largest of its kind in the UK, around 7000 business answered it, and what it shows is that the UK economy is making encouraging but modest progess in the first quarter of this year. Business confidence is up and exports, both deliveries and orders, have improved significantly, particularly in the service sector. What this shows is that businesses are incresingly resilient and looking to invest and export The British Chamber of Commerce says its data suggests the economy continued to grow in the first three months. They say the official GDP figures from the ONS, which showed the economy shrank by 0.3 per cent in the last quarter of 2012, may be exaggerating the weakness of the UK economy. However the survey suggested more mixed fortunes for the UK manufacturing sector, which mirrored Europe by shrinking for a second consecutive month in March. Manufacturing accounts for around a fifth of the UK economy, while services make up more than three-quarters of GDP.