A business poll by the British Chambers of Commerce has found that British exports increased in the first quarter of 2013 on the same quarter last year. The growth was led by the service sector which saw a near-record pace of expansion.
Sentiment for the year ahead looks good with 40 per cent of service providers and 44 per cent of manufacturers expecting an increase in turnover over the remainder of the year. For services providers that marks the highest optimism since early 2008.
BCC Chief Economist David Kern:
The UK is increasingly becoming a largely service sector economy, and developing the export potential of the service sector is critical to our future long-term prosperity.
The first quarter improvement in most key balances supports our view that UK output has continued to grow in the early months of 2013. Fears of another recession are calmed by our results. The survey reinforces our assessment that recent Office for National Statistics GDP figures have exaggerated the weakness and the volatility in UK output.