U.K. Economy Stabilizes In Q2: BCC



The U.K. economy is still strong and moving in the right direction, the Quarterly Economic Survey from the British Chambers of Commerce showed Tuesday. In manufacturing, balances for domestic sales, profitability confidence and capacity utilization were at their all time highs in the second quarter. At the same time, there were no balances at their all-time highs in services. Meanwhile, exports and investment balances declined in the second quarter, for both manufacturing and services, survey based on responses from 7,000 businesses revealed. Despite these falls, the second quarter export balances and most investment balances are still above their average 2007 pre-recession levels. In the recent economic forecast, BCC predicted that quarterly GDP growth for the second quarter would be 0.8 percent, with full-year growth of 3.1 percent, said David Kern, chief economist at the BCC. However, these results mean that risks of a downgrade have increased. Further, the survey showed that that intentions to raise prices in both manufacturing and services eased and wage pressures weakened in the second quarter.

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