GOOD NEWS ON GROWTH BUT MORE NEEDED
October 25 2013.



- GDP increased by 0.8% in Q3 2013, compared with Q2. Output increased in all the main sectors

- Quarterly growth in Q3 was 0.7% in services, 0.9% in manufacturing, and 2.5% in construction, but there was a big fall in electricity and gas

- GDP is still 2.5% below its 2008 peak


Commenting on the preliminary GDP figures for Q3 2013, published today by the ONS, John Longworth, director general of the British Chambers of Commerce (BCC) said: “This is the highest quarterly increase we’ve seen in three years, so the economy is clearly moving in the right direction. Our own surveys have consistently shown that businesses are confident and recent economic data has been positive so we have much to be optimistic about. But we are still behind a number of advanced economies such as the US and Germany that have managed to recover the output lost during the economic downturn. Much more needs to be done to transform our economy from being good to being really great. Businesses are in desperate need of better access to finance, and trade promotion has to be prioritised so that firms who are looking to do business overseas are able to take that first step towards exporting.”

David Kern, chief economist at the BCC said: “These figures are broadly as expected, and would have been even stronger if it wasn’t for the sharp fall in gas and electricity. Growth in the main components of the private business sector, particularly manufacturing and construction, is gathering momentum, which is good news. However the economy as a whole is still below its pre-recession level, and only the services sector has caught up with its pre-recession peak. The government and the MPC must continue to make every effort to maintain progress, through bold policies and a continuation of forward guidance on interest rates.”