Positive growth, but disappointing trade figures

27th November 2013

· GDP quarterly growth was 0.

8% in Q3 2013, unrevised from preliminary estimate · All the major sectors recorded positive growth in Q3 · Consumer spending and business investment recorded positive growth in Q3, but there was a disappointing worsening in the trade deficit as exports fell and imports rose Commenting on the second estimate of GDP for Q3 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: -As expected, the new figures confirm that GDP grew by 0.8% in the last quarter, with all the major sectors recording positive growth. While the main drivers of UK growth have been the services sector and household consumption, it is good news that business investment grew by 1.4% in the third quarter. However most of the fall in business investment following the recession has not yet been made up and the weaker trade figures highlight the importance of supporting our exporters. -While UK growth in Q3 was the strongest of the G7 economies, longer-term comparisons are less impressive. GDP is still 2.5% below its pre-recession level, while the US and Germany have made up their shortfalls. It is clear that the positive growth figures should reinforce business confidence, but while the recovery continues to face risks, the government must support the private sector as it drives the recovery.