UK Q4 growth slows down: survey
13 Jan 2011
UK economic growth slowed in the fourth quarter of 2010, compared to the previous quarters, according to the latest survey conducted by the British Chamber of Commerce (BCC).
The quarterly review of around 5,600 businesses indicates a 0.4-0.5 per cent GDP growth in Q4, while the official figure for the September quarter was a 0.7- per cent expansion, and also a more positive 1.1-per cent growth recorded in the June quarter.
The projection is similar to the 0.4-per cent expansion forecast by the Purchase Managers Indices last week.
The sluggish recovery is primarily due to poor performance by the services sector that outweighed the encouraging results from the manufacturing sector and exports.
''The economy continues to grow, but at a low pace,'' currently characterised by a ''very strong'' manufacturing industry and a ''weak, lukewarm, disappointing'' services sector, BCC economist David Kern said.
The BCC survey revealed that exports and new orders in the December quarter grew the highest since 1994, an indication of a resurgent global economy, and growing demand for British goods.
