The British Chambers of Commerce (BCC) has carried out their annual Economic Study, which shows that the worst of the recession could be behind us.
According to their findings, manufacturers have coped better with the economic downturn than services based on Q2, however; overall the manufacturing sector is in a worse condition. Based on a comparison of this years and last year’s Q3, turnover confidence has risen 40 points for manufacturing firms, from -38 in Q1 to +2 in Q2.
Despite both sectors aiming to hire again, the BCC is predicting that by the mid-2010 unemployment rates will be at 3.2 million.
Speaking about their findings, Director at the British Chambers of Commerce, David Frost said, “These results are sending Gordon Brown and Alistair Darling a strong message from the business community. It is absolutely vital that the improvement in business confidence is nurtured.”
He continued, “Our economy is based on confidence, and wealth creating businesses need to know they will be given the freedom and flexibility to drive the UK out of recession and into a sustainable recovery.”
Chief economist at the BCC, David Kern added, “The pace of decline in the UK economy is clearly moderating. The worst phase of the recession is over, but serious downward pressures persist across all sectors and regions. Most key balances are still in negative territory and remain weak by historical standards. Recovery is now possible but it is not yet secure. Further corrective measures are still needed to support the economy. The marked improvement in confidence, albeit from exceptionally low levels, is welcome. However, these recent gains can only be sustained if the economy continues to stabilise and the recession ends.”