BCC: UK economy remains stagnant

City A.M. Reporter
The UK economy has lost momentum, with domestic and export demand slowing, the business lobby British Chambers of Commerce said this morning.

The survey, of 7,593 businesses across the UK, shows the domestic market stagnating and a fall in export activities thanks to domestic austerity and the Eurozone crisis denting confidence.

Business confidence and investment falls, weak recovery in exports and weak domestic orders are all weighing on the economy, the lobby group said.

John Longworth, director general of the BCC, said this morning: “Economic growth is weak and businesses are less confident and less likely to invest than they were at the beginning of the year.”

He added: “Despite official estimates, we believe the economy is still growing, but it is slowing. We need immediate measures now to support confidence and investment, a radical long-term growth plan, and a continued commitment to deficit reduction.”

David Kern, official economist at the BCC, labelled UK economic performance as “weak and inadequate”.