UK Economy 'grew in third quarter'

The UK economy has grown in the three months from July to September, according to figures from the British Chambers of Commerce (BCC).

The BCC have stated that the economy has grown by 0.5%, based on a survey of 7,593 UK firms.
Additionally, it was revealed last week that the UK economy contracted by less than thought in the second quarter, by 0.4% in the period from April to June.

The figures come despite the Office of National Statistics’ (ONS) ‘gloomy estimation’ that the economy has been contracting for the last nine months.

This said, the BCC, who represent 104,000 business members, have conceded that fixing the UK’s finances will take longer than previously hoped.

Some ONS figures causing concern include the performance of the construction sector. The Markit/CIPS purchasing managers' index on the sector suggested that construction had contracted again in September, although at a slower rate than in August.

"UK Construction PMI data for September presents another bleak assessment of business conditions in the sector," said Tim Moore, senior economist at Markit, a financial information services company.

The BCC also said that its members' confidence in future turnover and profit had fallen to levels last seen at the end of 2011.

The BCC maintain that the UK economy is still growing, but at a slower pace. “We need immediate measures now to support confidence and investment, a radical long-term growth plan and a continued commitment to deficit reduction,” BCC chief economist David Kern recommended.

To help promote growth, the organisation has proposed a "growth voucher scheme". It will offer 20,000 small businesses £5,000 worth of advice to jump start investment and expansion plans.

The ONS will release its first estimate of economic growth in the third quarter on the 25th October.