Businesses upbeat as Chamber upgrades short-term growth forecasts

Cambridgeshire Chambers of Commerce has upgraded its short-term GDP growth forecast for 2014 from 2.2 per cent to 2.7 per cent, which would take UK GDP above Q1 2008 (pre-recession peak) levels by the end of next year.

The expectations have been published in the British Chamber of Commerce Economic Forecast Q4 2013, which also predicts that household consumption will be the main driver of growth in 2013 and 2014, boosted by the strong housing market.

John Bridge OBE, Chief Executive of Cambridgeshire Chambers of Commerce, said: “We are experiencing a period of growing confidence here in Cambridgeshire and that is something we expect to be reflected at the beginning of January when the results of our Quarterly Economic Survey for Q4 2013 are published. 

“Many of the companies we speak to feel they have been relying largely on their own determination and flexibility to get through the last few years, but this is a crucial time for policy-makers. As the general election draws closer, it is essential that economic policy continues to reflect a long-term strategy that is not compromised by political nuances. Our members tell us that the most significant threat to business confidence would be the premature increase of interest rates. The MPC must hold their nerve and allow the improvement in economic conditions to become more established before making changes that will risk the very enterprises that have pulled the UK out of recession.”

The growth forecast comes just a month after Grant Thornton published its own analysis of the financial performance of Cambridgeshire’s 100 largest companies. It reported a seven per cent increase in turnover, exceeding overall GDP growth, with a 51 per cent increase in operating profits and consequently a doubling in contribution to the exchequer with £206million of tax paid.

John Bridge continued: “This is excellent news for the county and indeed the region and reflects the resolute determination of our business community to find new and innovative ways to thrive in the face of adversity.”

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