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Things Looking Up?

Written By On 05/04/2013

The British Chambers of Commerce conducted a survey which involved over seven hundred businesses in the UK from the powerhouse sector. It showed positive results as companies in general are more optimistic about the future.

Over three quarters of the United Kingdom's economic output is made up by the services sector which includes retailers and banks. Orders they have taken plus deliveries they have already exported from the beginning of January until the end of March 2013 came very close to figures this country has not seen in nearly twenty years.

The analysis also unfolded more positive signals of the economy health, showing a rise in company salaries in the month of March, and the quickest increase in new business for nearly a year. However, people are still struggling to pay their bills as payday loans are on the rise. There were over eight million payday loans taken out between 2011 to 2012 estimating over two billion pounds borrowed in this particular sector.

This contradicts fears of a triple dip recession and shows evidence that comments of them may be a little premature. There is now a new optimism that the manufacturing and construction sectors will begin to show signs of improvement.

David Kern, chief economist from the group commented on the report and said

The survey reinforces our assessment that recent gross domestic product figures published by the Office for national Statistics have exaggerated the weakness of the UK economy.
He fears that reporting a negative growth for the first three months as a triple dip recession is inaccurate and that may damage the UK's confidence for no reason.

The Office for National Statistics reported that services sector for the first month of 2013 had risen by 0.8% on the previous January in 2012. It had also made gains of 0.3% on December 2012 even with the bad weather we experienced.

However, Chris Williamson, Markit's chief economist said

The weakness of private-sector growth signalled by the PMI data in the first quarter means that a flat GDP picture or even a decline could be seen if government sector output falls.