According to the British Chambers of Commerce (BCC), the UK’s economy is gradually recovering from a slowdown, although it is still in a precarious position as any shock is likely to hamper growth further. The BCC considers this a “temporary” recovery, as it must be backed by improvements in export and employment. In this regard, the BCC is concerned about the rise in unemployment nationwide, as reported earlier this week.

The recovery is said to have stemmed mainly from the manufacturing sector, but the BCC sees this as unsustainable, based on the sector’s past performance. Thus, any development should be supported by sustained growth in the services and export sectors. The BCC also said the Bank of England’s monetary policy committee should strive to maintain interest rate flexibility to attract more new companies starting up and engaging in new business. Otherwise, the economy runs the risk of losing its recovery streak.

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