A ray of hope emerged as the British Chambers of Commerce upgraded its UK growth forecast for the ongoing year, 2014 and 2015. But also the good news is that consumer confidence substantially climbed in May, according to a separate survey.
UK economy to grow faster
On the 31st of May, the British Chambers of Commerce informed that it revised its outlook for the UK economy over the three years ending 2015. The figures indicated that the industry body lifted up its UK growth outlook to 0.9 percent for 2013 from the previous projection of a 0.6 percent increase.
According to the estimates released on the he 31st of May, the UK will see its economy climb around 1.9 percent in 2014, compared to the earlier projection of a 1.7 percent advancement. As for 2015, the UK is expected to record a 2.4 percent expansion and this is a slight improvement when compared to the previous projection of 2.2 percent growth.
At the same time, the British Chambers of Commerce informed that it raised its estimates for UK unemployment. Having taken into account new measures and figures, the industry body said that UK unemployment was expected to climb to around 2.65 million in the July-September period of 2014. As for the quarter ended March 2013, the UK noted an unemployment rate of roughly 7.8 percent with approximately 2.52 million people jobless.
John Longworth, director general of the BCC, said the trend was promising, but he underlined: "Unfortunately, this does not change the fact that economic growth is still too weak, and the pace of recovery will remain unduly slow for a while yet. We are still a far cry from getting the economy fully back on track. The UK is, and will for some time, be performing below its potential."
According to the findings of the British Chambers of Commerce, UK growth faces many internal and external challenges, including the eurozone uncertain future. To bolster UK economic growth, the government should think about pouring money in trade promotion as other measures would not be efficient.
Furthermore, the BCC revision of its growth outlook followed the statement of BoE Governor Mervyn King, which was made on the 15th of May, that the economic recovery was within reach, thereby adding to promising signs about the future.
Moreover, on the 31st of May, GfK issued its survey showing that consumer confidence advanced in May. According to the findings, gauge climbed by 5 points to 22, exceeding analysts’ estimates. UK households became a little bit more optimistic about the economy in general and their own budgets. What’s more, averting a triple-dip recession has lifted Britons’ spirit despite the fact that their budgets face increases in prices.
It seems that after all there is a ray of hope and Britons are waiting for better days. The feeling of misery and dejection, which has been dominating in the last two years, seems to be finally over.