Commenting on the GDP and business investment figures for the third quarter of 2010 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“These figures are slightly disappointing, as the quarterly growth figure was revised down slightly (from 0.8% to 0.7%). Nevertheless, the UK recovery is still strong and confirms our assessment that the economy will be able to cope with the deficit-cutting programme without a major relapse.
“However, there are some worrying features. Manufacturing investment fell, and the growth in imports remains stronger than exports. Since we have not yet seen the impact of the increase in VAT and the large spending cuts set to take effect in 2011, it is critical to take measures that ensure the recovery continues.
“The MPC must persevere with expansionary policies and interest rates must be kept as low as possible until the recovery is secure. On its part, the Government must ensure that the private sector is able to make 2011 a Year for Growth. All obstacles that hamper businesses in their efforts to create jobs, invest, and export must be removed.”