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BCC: Worsening Trade and Investment Figures Highlight Headwinds Facing Economy

  • UK GDP in Q1 2016 rose 0.4%, unrevised from the first estimate, while the annual figure was revised down to 2% from 2.1%
  • Business investment fell 0.5% over Q1, and was 0.4% lower than a year earlier
  • The trade balance worsened as exports fell 0.3% in the quarter, while imports rose 0.8%

Commenting on the revised estimate of UK GDP for Q1 2016, published today by the ONS, David Kern, BCC Chief Economist, said:

“Although the quarterly GDP figure for Q1 2016 is unrevised, the falls in business investment and exports are concerning, and highlight the fact that UK growth is unduly reliant on consumer spending. Our own trade survey showed a drop in export sales growth in Q1 2016 among services firms, which is concerning from a sector that has led UK export growth for some time.

“On current trends, Britain is some way from turning its export performance around, but will need to do so if we are to create a more balanced economy. This makes it important for the government to take action to boost infrastructure investment and support UK exporters in their efforts to break into growing markets.”

Last modified on Friday, 27 May 2016 09:45

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