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BCC warn British economy is 'too reliant' on spending

By Holly Williams

Published 10/12/2015

The British Chamber of Commerce has said Britain's economy is too reliant on consumer spending fuelled by borrowing15
The British Chamber of Commerce has said Britain's economy is too reliant on consumer spending fuelled by borrowing15

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.

Belfast Telegraph

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