Sluggish growth in domestic demand takes its toll on London’s businesses

WEAK domestic demand is holding back economic recovery in the capital, figures from the London Chambers of Commerce and Industry (LCCI) reveal this morning.

While the proportion of companies reporting a rise in domestic activity increased in the second quarter of the year, they remain extremely low by historical standards.

“London’s businesses saw conditions improve during quarter two but at a frankly disappointing and sluggish rate, with growth still way below pre-recession levels,” said LCCI deputy chief executive Peter Bishop.

Labour yesterday continued its attack on chancellor George Osborne, ahead of this morning’s GDP figures that many economists expect to be downbeat.

“George Osborne is trying to get his excuses in early, but they will not wash with the British public,” said Labour MP Angela Eagle.

Eagle was speaking after Osborne insisted that the coalition has brought stability the UK “in a world of great uncertainty”. Osborne pledged: “we are sticking to the economic plan [of deficit reduction].”