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Manufacturing improvement welcome, but more policies for growth still needed
Commenting on the manufacturing output figures for December 2011, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“These figures are stronger than expected and support our belief that the UK economy will avoid recession. The sector’s overall performance has been relatively weak in recent months. However, the December upturn is positive as it comes in the face of a tough austerity programme at home, and difficult challenges facing UK exporters in the eurozone.
“Every effort must now be made to build on the December improvement and strengthen business confidence. We hope that the MPC will announce an increase in quantitative easing later today, but this must be supplemented by policies to support growth. This means the implementation of effective credit-easing measures or an SME bank to improve the flow of credit to businesses. In the March Budget, we urge the Chancellor to announce meaningful steps that will empower businesses to create jobs and deliver growth.”