"We have long-championed the idea that businesses up and down the country have remained confident about their abilities to grow. Even more firms now believe they can increase their turnover and sales, and hire more staff, which is a testament to their hard-work, creativity and ambition."
- John Longworth, BCC director general
Another ray of sunshine appeared on Tuesday, when British Chambers of Commerce said the country is poised to expand at the fastest pace in five years in the third quarter. In its quarterly survey the BCC projects the economy to grow by about 0.9% and 1% between July and September- the highest rate since summer 2007. While official data will be released only on October 25, economists are constantly upgrading their growth forecasts in the wake of strong fundamental data and brighter prospects.
Companies in key services sector saw their sales and orders expanding at the fastest since 2007, while improvement in manufacturing is the sharpest since the early 1990s. British labour market's prospects are brighter as well, as a balance of 26% of services businesses planned to increase hiring in the next three months. On the back of these reports, the British Chambers of Commerce also mentioned they are likely to revise up its GDP forecasts for the next year. The BCC also mentioned record-low interest rates should boost the economy, while government should support the economy by cutting red tape and business taxes. Nonetheless, there are still high risks for the economy, as levels of investment are still relatively low, while exporters are needed more support through increased trade promotion and better access to cheap credit.
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