Commenting on the revised GDP figures for the second quarter of 2010, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“The upward revision to GDP in the second quarter is good news. This puts the UK in a better than expected position as we prepare for the austerity measures that will be introduced over the next few years.
“The figures do contain some worrying features. Growth in services has been revised down and capital investment fell after recording strong growth in the first quarter.
“In spite of these positive figures, it is important to bear in mind that the implementation of the tough deficit cutting programme will inevitably have a serious dampening affect on demand and risks of an economic setback remain. Given the fragility of the situation, it would be dangerous for the Monetary Policy Committee to consider raising interest rates any time soon. Businesses are still facing huge pressures and interest rates must stay as low as possible for as long as possible.”