BCC: Welcome GDP figures, but infrastructure investment remains vital
- GDP growth in Q2 2016 rose to 0.6%, from 0.4% in Q1 2016
- Services growth (0.5%), manufacturing (1.9%) and total production (2.1%) all rose, while construction (-0.4%) fell
Commenting on the preliminary UK GDP figures for Q2 2016, published today by the ONS, Suren Thiru, Head of Economics at the BCC, said:
“The better than expected pick-up in GDP growth in the second quarter shows that the UK economy was in decent shape in the run-up to the EU referendum. However, this is only the first estimate, and our own survey data suggests that growth may have been closer to the outturn for Q1.
“The significant contribution made by the manufacturing sector is particularly encouraging, but the improvements were from a low base, and the UK economy remains reliant on the service sector to drive growth.
“It is far too soon to draw firm conclusions about the effect of the EU referendum result on the UK’s future growth prospects. But with the additional uncertainty around the business environment, addressing the long-standing underinvestment in Britain’s infrastructure in business critical areas such as transport and broadband will be vital to driving long-term growth, and will bolster business confidence.”