Positive momentum building as economy grows by 0.6 per cent – Chamber

Business leaders today hailed “a sense of positive momentum” as the UK economy continued its recovery from last year’s recession.

According to official figures released this morning, the economy grew by 0.6 per cent between April and June.

The latest figure was in line with forecasts and follows a 0.7 per cent increase in the first three months of this year.

The Office for National Statistics said growth was led by the services sector, in particular the IT industry, legal services and scientific research.

Services are the biggest contributor to the UK's economy, far outstripping manufacturing and construction, both of which saw output fall between April and June.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “Although in line with expectations, it's still pleasing to see the UK economy continue to grow and pull away from the shallow recession of last year.

“Coupled with the likelihood of the Bank of England loosening monetary policy in the coming months, there seems to a sense of positive momentum building as we head into the autumn.

“Data from our latest Quarterly Business Report also seems to reflect this trend with positive projections for turnover and profitability over the coming months - however, underlying challenges remain in relation to firm level cost pressures and recruitment.

“The Government needs to build on this momentum and maintain a relentless focus on growth and turbocharging the economy- building better international trade links, improving the pipeline of skilled talent and reducing the financial burden facing businesses need to figure highly on the checklist.”