UK economy grows as manufacturing recovers
Business Digest: British Chambers of Commerce voices concern for health of the service sector
The UK economy grew by between 0.6 and 0.7 per cent in the three months up to June, according to a survey of 5,600 businesses by the British Chambers of Commerce.
However, it voiced concern for the health of the service sector, which accounts for three-quarters of British GDP.
The cost of raw materials, which is putting pressure on prices, is also a concern, but despite this, manufacturing export sales rose to their highest level in four years thanks largely to a fall in the value of Sterling. Employment in the sector also increased.
But the director general of the BCC, David Frost, sounded a note of caution: "With very austere times ahead, no one should kid themselves into thinking that the UK's economic recovery is totally secure."
Read a full report at BBC News. ·
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