BCC: Firms face tough recovery
Jul 07 2009
The British Chambers of Commerce (BCC) Quarterly Economic Survey claims that the worst of the recession has passed, but businesses still face tough conditions.
Information gathered from around 5,600 firms over the second quarter of the year suggests that the manufacturing and service sectors are seeing 'welcome progress' in areas such as business sentiment and employment prospects.
However, the group also points out that most of these indicators remain weak when compared to the past and calls for continued support from the government through the period of economic recovery.
David Kern, BCC chief economist, comments: 'The marked improvement in confidence, albeit from exceptionally low levels, is welcome. However, these recent gains can only be sustained if the economy continues to stabilise and the recession ends.'
The research shows that businesses' turnover confidence has become positive for the first time since the third quarter of 2008, which the BCC claims is the survey's most encouraging finding.
In manufacturing firms, confidence has 'improved dramatically', jumping from -38 points in the first three months of the year to two points in the second quarter.
Furthermore, the organisation notes that employment expectations in both manufacturing and services are improving, but sticks by its prediction that unemployment will hit 3.2 million in 2010.
Recent research from the Nottingham University Business School suggested that small and medium-sized enterprises are cautious over claims that 'green shoots' of recovery can be seen in the economy.
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