British service sector exports hit an all-time high last quarter, according to the British Chambers of Commerce (BCC) economic survey.
The study, which surveyed 5,600 companies, found that the number of sales and orders has now exceeded pre-recession figures, which the BCC say this may be a good indicator of economic growth.
John Longworth, director general of the BCC, said:
“We have witnessed many false dawns during the recovery, and external shocks still loom on the horizon. Given that over the next year or so we face political change at home and abroad, long–term policies that support our businesses as they look to grow and invest are crucial.”
Knowledge–based businesses saw a 38% increase in sales, up on the last three months of 2013. Manufacturing and chemical companies also expressed optimism in future sales.
The BCC say that inflation must be kept low to ensure a solid recovery. David Kern, chief economist at BCC, said:
“UK growth is still reliant on consumer spending, driven by a resurgent housing market and a declining savings ratio. Given that UK personal debt levels are too high and need to fall, it will be hard to maintain growth levels in the medium-term without significant structural changes to our economy.”
Photo by Michele Ursino