BCC warn British economy is 'too reliant' on spending
Britain's economy is too reliant on consumer spending fuelled by borrowing, a business group warned as it downgraded growth forecasts for 2015.
The British Chambers of Commerce (BCC) said there needed to be a "fundamental shift" in the economy to balance growth away from the dominant services sector and cautioned there was "still a long way to go" in the UK recovery.
It cut forecasts for gross domestic product growth from 2.6% to 2.4% in 2015, and from 2.7% to 2.5% in both 2016 and 2017.
The BCC blamed a weaker-than-expected trade performance and recent disappointing pull-back in activity in the manufacturing sector. Official figures on Tuesday revealed that manufacturing output dropped by 0.4% month-on-month in October.