Positive growth continues but MPC must support exporters

1st July 2014

GDP growth for Q1 2014 remains unrevised at  0.

8% on the quarter, Year on year GDP growth revised down from 3.1% to 3.0% In Q1 2014 business investment rose by 5.0%, revised up from previously estimated 2.7% The trade balance narrowed from £5.5bn in Q4 2013 to £4.2bn in Q1 2014 Current account deficit in Q1 2014 was £18.5bn, down from £23.5bn in Q4 2013 Commenting on the revised GDP figures for Q1 2014 published by the ONS, David Kern Chief Economist at the British Chambers of Commerce (BCC), said: -The unrevised GDP figures for Q1 show that Britain's recovery remains on course, and the revision of quarterly business investment growth to 5.0% is particularly pleasing to see. While the trade deficit has narrowed compared to 2013, a fall in imports rather than growth in exports was the deciding factor. Exports remained virtually static as growth in service exports was matched by a fall in goods exports. -The rise in sterling is making UK exports more expensive and uncertainty around early interest rate increases is adding to the difficulties facing our exporters. We hope that the measures announced by the Bank of England governor Mark Carney this week, to address problems in the housing market, will mean that an early tightening in monetary policy can be avoided.