The British Chambers of Commerce (BCC) today publishes its Quarterly Economic Survey – the UK’s largest and most authoritative private sector business survey.
BCC responds to ONS GDP figures for August
Commenting on GDP figures for August 2020 published today by the ONS, BCC Head of Economics Suren Thiru said:
“While the latest data confirms a rebound in economic activity continued into August, the sharp slowdown in growth indicates that the recovery may be running out of steam, with output still well below pre-crisis levels.
“The increase in activity in August largely reflects a temporary boost from the economy reopening and government stimulus, including the Eat Out to Help Out Scheme, rather than proof of a sustained ‘V’-shaped recovery.
“Although the UK remains on course to exit recession in the third quarter, the looming triple threat of surging unemployment, further restrictions and a disorderly end to the transition period means the recent rally in economic output is likely to be short-lived.
“As a result, the government must stand ready to help firms navigate a difficult winter, beyond the Chancellor’s recent interventions. This means fixing the ailing Test and Trace system to prevent future damaging lockdowns and providing comprehensive support packages for firm’s subject to local restrictions.”