The British Chambers of Commerce predicts that Britain’s GDP will finally catch and exceed its 2008 peak within the next few months. Strong growth in consumption and the services sector in 2014 will take the UK back to where it was six years ago.
The BCC upgraded its gross domestic product (GDP) growth forecasts from 2.7 per cent to 2.8 per cent in 2014 and from 2.4 per cent to 2.5 per cent in 2015. The BCC also forecast economic expansion of 2.5% for 2016.
A Markit survey has indicated that the UK service sector continued to "expand strongly" in February 2014, with job creation at its fastest pace for four months.
The expansion is also supported by another marked increase in new business.
The Markit/CIPS Purchasing Managers Index (PMI) for the sector was 58.2 last month and, although this is below January's reading of 58.3, it is well above the 50 level that indicates expansion.
The Federation of Small Business (FSB) is calling on the Chancellor to focus on enterprise and maintain small business growth in anticipation of this year’s Budget.
Urging for the creation of a ‘right environment’ for small business growth through market reforms such as energy and financial services, the FSB says that the Government need to support small businesses through better focused schemes.
Business businesses are as optimistic as they have been for more than 22 years, according to a new survey by BDO.
One sector which is feeling particularly optimistic is manufacturing, with many such firms expecting to see growth over the next two quarters. The BDO index for manufacturing hit 103.8 in January, the highest seen since 1992.
Service sector firms are also expecting good things over the next six months, with expectations for growth and hiring intentions both jumping.