The British Chambers of Commerce (BCC) Q3 Quarterly Economic Survey of over 4,700 companies offers a mixed picture with the manufacturing sector out performing the service sector. Overall however the picture is of a weakening UK economy and the BCC is reiterating its call for an interest rate cut in November.
The Service Sector has recorded worrying Q3 falls in its balances for both domestic and export sales and orders. Balances for plant & machinery investment, and employment expectations are weaker. Though cashflow and confidence are stronger, the service sector's overall Q3 performance clearly worsened.
The Manufacturing Sector performed more strongly than the Service Sector but the results are still mixed. Balances for employment, employment expectations and investment are stronger yet cash flow is weaker and lower confidence balances are a cause for concern.
David Kern, economic adviser to the British Chambers of Commerce, said:
"The results of this survey show that the MPC must cut interest rates in November. An early cut in interest rates will reduce the need for larger and riskier cuts later on.
"Small businesses face growing threats in the year ahead. The Chancellor has this week reduced his growth forecast whilst using the PBR to hit entrepreneurs. By reducing rates next month the MPC can help businesses through what are likely to turbulent times."