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UK economy still growing, says BCC
There was good news on the British economy this month when the British Chambers of Commerce (BCC) reported that the UK economy had continued to grow in the three months to the end of June.
The business organisation predicted growth of between 0.6 and 0.7 per cent, but cautioned that serious concerns remained over a sustained recovery.
The figures were boosted by the manufacturing sector, which posted its best export sales in four years, despite concerns over rising raw material costs.
By contrast, the retail and services sectors - which account for around three-quarters of UK GDP - reported slugglish growth, and are thought to be more vulnerable to upcoming public spending cuts.
Despite this, a majority of BCC members backed the action taken by the new government to cut spending and put up taxes in an effort to tackle the budget deficit, although many members acknowledged it could adversely affect their businesses.