British Chamber of Commerce

BCC predicts slower economic growth for 2017

Final quarter survey for 2016 showed strong growth, but all signs pointing towards a slower start to 2017.

Plan for a slow start to 2017 is the advice from the British Chamber of Commerce forecast.

While figures showed a strong last quarter of 2016 with the UK economy continuing to grow, rising inflation rates mean that many sectors are likely to see slower growth as the New Year progresses.

Uncertainty over Brexit is likely to result in reduced consumer spending and business investment, while the rising inflation will also mean a drop in real wages.

The weakened pound may work in favour of export companies, though again, growth in this sector is also expected to slow.

It’s not all bad news – growth is still growth, albeit if it is at the slowest rate since 2009. And the current projections may improve if the government decides to support business investment in the coming months.

Read the full report here.