24/11/11

  • GDP in Q3 2011 up 0.5% on the quarter, up 0.5% on the year

Commenting on the revised figures for Q3 GDP published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:   

“As widely expected, the headline increase in GDP was unchanged from the preliminary estimate. But the additional detail, published for the first time, paints a disappointing picture. Business investment fell by 1.4%, while exports declined, and imports edged up. Household consumption was flat, but government consumption was up, despite the austerity plan.

“While fears of recession have so far proved unfounded, the UK is not yet making the necessary progress in rebalancing the economy towards net exports and investment. Early indications from the fourth quarter are concerning, and the rapidly worsening situation in the eurozone could pose major challenges, given the speculative onslaught that other European countries are now facing.

“It is right for the government to persevere with its deficit-cutting plan. However, there is an urgent need to reallocate priorities within the overall spending envelope towards growth-enhancing policies aimed at helping businesses create jobs, invest and export. The Autumn Statement will provide the opportunity for the Chancellor to make use of the flexibility that is available to him within the fiscal plan. The UK has gained the trust of the financial markets, and this credibility can now be used to take measures supporting growth.”

Ends

Notes to editors:

ONS figures: http://www.ons.gov.uk/ons/rel/naa2/second-estimate-of-gdp/q3-2011/index.html

The British Chambers of Commerce (BCC) is the national voice of local business.

The BCC sits at the heart of a powerful nationwide network of Accredited Chambers of Commerce, serving over 100,000 businesses across the UK, which employ over five million people.

Media contacts:

Liz Larvin
Tel: 020 7654 5813 / 07825746812
Email: l.larvin@britishchambers.org.uk

Lisa Morrison
Tel: 020 7654 5812 / 07717682221
Email: l.morrison@britishchambers.org.uk