WELCOME GROWTH BUT NO ROOM FOR COMPLACENCY
July 29 2015.



- GDP growth in Q2 2015 was 0.7%, up from 0.4% in the first quarter

- Services output rose by 0.7%, total production was up by 1.0% but construction was flat

- GDP in Q2 2015 was 2.6% higher than a year ago and was 5.2% higher than in the pre-recession peak  in Q1 2008

- GDP growth matches the forecast made by the BCC last month


Commenting on the preliminary GDP figures for Q2 2015, published yesterday by the ONS, David Kern, Chief Economist at the British Chambers of Commerce, said: "These figures show a welcome acceleration in growth, with the services sector once again being the driving force. But today's figures also point to other sectors where life is more difficult.

"The manufacturing sector saw output fall by 0.3% in the quarter, continuing to highlight the serious, systemic problems our manufacturers face. The construction sector also remains weak. The 1% growth in total production was mainly due to a surge in mining and quarrying - a highly volatile sector.

"It is good that our economy continues to grow, but there are many hurdles to clear in the months ahead. This is not the time for complacency. Our economy remains unbalanced and international uncertainty adds to the challenges our economy faces.

"A premature move to increase interest rates could choke the recovery and the MPC must keep rates at existing levels for the time being."