UK Economy Shows Few Signs Of Comeback As Rate Hike Decision Nears BCC
LONDON (Reuters) - Britain’s economy shows little sign of improving on lackluster growth and it seems “extraordinary” that the Bank of England is considering raising interest rates, the British Chambers of Commerce said on Friday.
The BCC’s Quarterly Economic Survey of businesses, the largest of its kind, said sales at services firms that make up the bulk of the economy were steady in the third quarter.
But there was little pick-up in pay pressures or investment, both of which the BoE expects to rise markedly next year.
Overall the BCC described the survey as “uninspiring”, with political uncertainty, currency fluctuations and Brexit clearly affecting British businesses.
Despite confounding forecasts that the 2016 vote to leave the European Union would lead to a sudden slowdown, Britain’s economy has struggled this year, posting its worst first-half performance since 2012.