Economic news

Manufacturing rise is unable to propel UK growth

Britain’s economy rose slowly in the July-September period this year, though manufacturing sector advanced, according to the British Chambers of Commerce.

More manufacturers said that internal sales and orders increased in the third quarter attaining its peak since the beginning of 2015, the BCC reported. Similar success is registered with exports and foreign orders in the industry.

A survey by BCC demonstrated that Britain’s companies had real problems with employing workers, which went downhill in the course of the quarter. Nearly a third of manufacturers claimed they faced difficulties recruiting people, as for the service sector, the figures climbed to the top since the start of last year.

The unimpressive data for the third quarter implies that political situation, currency ups and downs and consequences of Brexit vote are continuing to pull down business growth outlook, said Dr Adam Marshall of BCC. As BCC explained, the intent to raise interest rates by the BOE in the present economic conditions is deemed as out-of-the-way.

BCC’s Suren Thiru said that they’d advise not to tighten monetary policy before it’s necessary, otherwise it could damage business, as well as consumer confidence and dampen Britain’s growth in general.

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