Services Sector Continues to Drive Growth
11 Sep 2024
Published in: British Chambers of Commerce News
The BCC reacts to latest GDP data from the ONS.
Reacting to the latest GDP data released this morning by the ONS, David Bharier, Head of Research at the British Chambers of Commerce said:
“It is important to look at the broader picture and growth of 0.5% in the three months to July is positive news. It shows the UK economy is continuing to expand at a steady rate going into the second half of the year. The services sector remains the biggest contributor to growth.
“It is however concerning that monthly GDP growth has flatlined for the second month in a row, with production and construction also struggling in July.
“Our latest economic forecast, published last week, which now expects 1.1% growth for the whole of 2024. As the inflation crisis has begun to ease and a clearer path has emerged on interest rate cuts, more SMEs are seeing increased confidence.
“However, businesses are still struggling to increase investment and trade due to continuing global economic and political uncertainty. Until those barriers are lowered, wider economic growth will stay limited.
“Next month’s budget will be a critical moment. Businesses understand the fiscal backdrop the Government is facing and the need to address public finances, but that must not be at the expense of investment and growth.”
Gemma Edwards, Policy & Impact Officer at Black Country Chamber of Commerce said:
“While it’s positive that there has been some growth, at less than 1% it’s clear that there is still much to be done to support British businesses to thrive and expand. All eyes will be on next month’s Budget to see what the Chancellor will do to help grow businesses and the economy.”
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