The UK economy is set to avoid a triple dip recession as business confidence grows, according to the latest Quarterly Economic Survey from the British Chambers of Commerce (BCC).
The weakness of the pound helped to boost exports in the first quarter
The BCC's survey of more than 7,000 firms in the first three months of this year revealed the economy had grown, thanks to a strong performance by UK manufacturing and service industries and rising exports reflecting the the weakness of the pound.
"Export balances in services are particularly strong, with deliveries and orders near the all time high in 1994," according to the report. "Business confidence and investment are also up, and cashflow, although still relatively weak, is now positive for both manufacturing and service sector businesses."
'Sunlit uplands of recovery'
John Longworth, BCC director general, said: "These results provide a glimpse of the as-yet-distant sunlit uplands of recovery. Businesses up and down the country are working hard to drive the economy, create jobs and export, but they cannot accelerate this process alone."
The government should introduce quickly the supply-side measures announced in the budget to get growth moving, and consider new ways to support business confidence, he added.
Recent moves to improve business access to finance, including the commitment to create a business bank, should be delivered without bureaucratic delays, he said.
