Rising retail sales strengthens hopes for Q3 growth, says BCC

16th August 2013

Commenting on the retail sales figures for July 2013, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: -We are now seeing a clear upward trend in retail sales, and these figures suggest that the pace of GDP growth in the third quarter will continue at a modest pace.

Some commentators have suggested that strong retail sales, while other areas of the economy remain weak, will lead to an unbalanced economic structure. We don't share these concerns, as although we would like to see more growth coming from investment and net trade, it is better to rely initially on domestic demand than to have no growth at all. And while net exports are not as strong as we would like, there is an improvement a point that many commentators ignore. To maintain business confidence we should focus on the positive features of our economy. In addition, increasing the flow of credit to growing businesses and keeping inflation low will help to gradually rebalance the economy.

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