Triple growth forecast upgrade unusual says BCC

The British Chambers of Commerce (BCC) has said that its move to upgrade UK economic growth forecasts for each of the next three years is an unusual one. Growth for 2013 is forecast to be 0.9%, with 1.9% and 2.4% expected in 2014 and 2015, up from 0.6%, 1.7% and 2.2% respectively for the three years. Chief Economic for the BCC, David Kern, said of the industry body’s forecasts: “I can’t remember any time recently where we upgraded all three years.” In other news, Office for National Statistics (ONS) revised figures, to be revealed on 27th June, are likely to eliminate the double-dip recession. The last UK recessionary period saw two quarters of -0.1% contractions, with at least one of these expected to be revised up, which would mean that the UK has not experienced a double-dip recession. A better-than-expected service sector performance as well as increased consumer spending are two factors that are likely to have contributed to any upward revisions in economic data.