UK Economic Growth Remains Subdued In Q4: BCC

The growth in the UK economy remained subdued at the end of 2017, according to the Quarterly Economic Survey published by the British Chambers of Commerce.

The survey showed that almost all services indicators were below their pre-EU referendum levels and the strong performance of manufacturers eased slightly in the fourth quarter.

The survey underscored that skill shortages were reaching critical levels. In services, the percent of firms reporting recruitment difficulties rose to 71 percent, the highest since records began. At the same time, the percent in manufacturing was the highest since the fourth quarter of 2016.

In the manufacturing sector, the proportion of firms reporting improved export sales and orders fell slightly from previous quarter. The indicators for domestic sales, employment expectations, recruitment and confidence in turnover were also lower than in the third quarter.

In the service sector, a key driver of the UK economy, growth remains muted and relatively unchanged from the previous three months. The proportion of firms confident that turnover and profitability will improve in the next year decreased.

“Looking forward, the UK economy is set to continue on an underwhelming growth trajectory over the near term with uncertainty over the impact of Brexit coupled with high inflation and weak productivity likely to dampen overall economic activity,” Suren Thiru, head of economics at the BCC, said.

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