The latest GDP figures for Quarter 2 (2014) are released today, Friday 25 July and have highlighted the following key findings:
- GDP growth in Q2 2014 was 0.8%, the same increase as in Q1
- The level of GDP in Q2 2014 was 0.2% higher than its previous peak in Q1 2008
- Year-on-year increase in Q2 2014 was 3.1%, marginally higher than in Q1
- The service sector led the recovery with quarterly growth of 1.0%
- Manufacturing output rose by 0.2% in Q2 2014, while construction recorded a fall of 0.5%
Commenting on the preliminary GDP estimate for Q2 2014, published today by the ONS, John Longworth, Director General of the British Chambers of Commerce (BCC) said: “The fact that Britain’s economy is now bigger than it was in 2008 is great news, and will provide a shot in the arm for businesses and consumers alike. Yet even though we’re one of the fastest-growing developed economies, there’s no room for complacency. Without sustained action, these growth figures could be ‘as good as it gets’ for the UK. The government and the Bank of England must pull out all the stops to encourage business investment, help exporters and get finance flowing to growing firms who still aren’t seen as a safe bet by the banks. Above all, interest rates need to stay low for as long as possible, and rise slowly and predictably when they do go up – to avoid undermining the solid business confidence that’s driving the growth we’re seeing in businesses across Britain.”
Caroline Williams, Chief Executive, Norfolk Chamber of Commerce said:The British Chambers of Commerce Quarterly Economic Survey (QES) also recently highlighted that business confidence in Norfolk and across the East of England continues to grow. Many businesses reported strengthening order books for both UK and overseas sales. With increased certainty surrounding the local economy, businesses feel able to invest in staff, plant and machinery. However there is still room to grow, as the number of organisations operating at full capacity remains low. Inflation remains a concern for all sectors, as is does the difficulties in recruiting staff.
The vitality of the Norwich retail sector continues and unemployment figures across the region fell, with Great Yarmouth reporting JSA Claimants at their lowest levels since 2005. With an upward trending local economy and continued business confidence, the future looks positive for Norfolk and the East of England.”
Norfolk Key findings in the BCC Q2 2014 QES:
- Manufacturing figures for domestic and export sales and orders improved
- Service sector figures from domestic and export sales and order also increased
- Both sectors reported improved confidence in profitability and cashflow balances strengthened
- Both sectors indicated their intention to recruit in the next 3 months
- Manufacturers operating at full capacity dipped considerably from 31% to 17%. Similarly the service sector reported a reduction in those operating at full capacity from 43% to 39%.
- Concern regarding interest rates was noted by both the Norfolk service sector and manufacturers. This was also reflected at a regional and national level.
