GDP figures will boost confidence
· Quarterly GDP growth in Q2 2013, revised up from 0.6% to 0.7%
· All the main sectors of the economy show positive growth in Q2
· Business investment rose 0.9%, and there was a particularly large rise in investment in dwellings (13.3%)
· There was a significant improvement in the net trade position, with exports rising 3.6% on the quarter and imports by 2.5%
Commenting on the second estimate of GDP for Q2 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said:
“The modest upgrade provides further evidence that the UK recovery is gradually gathering momentum. While there is no room for complacency, as the level of UK output is still more than 3% below its pre-recession level, this will help to sustain business confidence. Business investment is still too weak in spite of the modest rise, but the figures support our view that Britain’s trading position is improving. Although the rebalancing towards net exports is taking some time, we have seen a significant narrowing of the trade deficit in the first half of this year.
“To build on this positive news, the government and the MPC must make every effort to maintain the recovery and to ensure that there are no setbacks. The international situation is still uncertain, particularly in some of the key emerging markets, and the eurozone may still face new problems, despite the fact that the region has returned to growth. Measures to support growth are still needed, with particular focus on ensuring that viable firms are able to obtain adequate finance.”