RSS feedsBet-hedging doesn’t come any more thorough than the latest economy survey from the British Chambers of Commerce. There are positive elements in the UK economic climate, according to the BCC, but many concerns too.
Delve a little deeper into the Q3 2006 figures and you can forgive the BCC for sitting on the fence. The results are decidedly mixed.
Net balances for exports, employment and investment are up across the board. But the domestic and confidence balances are mixed.
Pressures to increase prices are much stronger, but manufacturing confidence balances have weakened. And there was a large fall in profitability confidence amid fears of a hike in interest rates later in the year.
The service sector’s Q3 news was relentlessly positive – almost. Balances improved for export sales and orders, employment and employment expectations, cashflow, investment in plant and machinery and both confidence balances. But home balances worsened overall, with a fall in home sales only partially offset by a marginal increase in home orders.
No wonder Sally Low, director of policy and external affairs, said: ‘The positive results should not be seen as an excuse for complacency or for damaging increases in interest rates. The UK upturn is still fragile.’
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