The UK economy is still in a precarious place in spite of better-than-expected growth news, according to British Chambers of Commerce Head of Research David Bharier.
He said: “Today’s first estimate for Q2, showing GDP grew by 0.2% is better news than expected, but the UK economy remains in a precarious place. Businesses are continuing to face a worrying mix of high inflation, rising interest rates, a tight labour market, and global economic uncertainty.
“Today’s data is in line with our Quarterly Economic Forecast which expects just 0.3% for the whole of 2023. While the UK remains on course to avoid a technical recession, small movements in one direction or the another won’tmean much for many firms facing the toughest trading conditions in years.
“Our latest Quarterly Economic Survey shows that most SMEs continue to report no improvement to investment, cash flow, or sales. Worryingly, 41% of businesses are now concerned about the impact of rising interest rates.
“UK businesses are very adaptable, but they are looking for clear direction from the government and the Bank of England, particularly on interest rate policy and a long-term plan to unlock investment.
