Business community welcomes GDP growth

THE UK’s avoidance of a triple dip recession shows there are signs of economic recovery emerging, members of Yorkshire’s business community have said.

Official figures yesterday showed output grew by 0.3% in the first quarter of the year, with gross domestic product growth being driven by the service sector and oil and gas.

The Office for National Statistics, which compiles the data, said the growth pointed to a slow, patchy recovery.

Jonathan Oxley, chairman of the West Yorkshire branch of the IoD, agreed and said: “These numbers come as no surprise because I believe there are clear signs that a recovery is now underway. 

“Businesses are still constrained by lack of financial liquidity and sentiment can still be knocked by further issues in the Euro zone. However, more and more businesses are now finding ways to move forward.”

Len Cruddas, chief executive of Leeds, York and North Yorkshire Chamber of Commerce, said: “We are pleased to hear a positive number following the GDP announcement although we recognise the economy is still very challenging for many businesses.

“That said, we are seeing increasing pockets of growth and positivity in our region as Yorkshire companies respond to the new economy by seeking out new markets, especially overseas.”

Redmayne-Bentley stockbroker, Lauren Charnley, said: “It will now be hoped that the economy can keep on the expansionary path and permanently avoid the so-called triple-dip recession, although the continuation of austerity may stunt growth moving forward.”

However, Richard Wright, executive director of Sheffield Chamber of Commerce, warned: “We have said for many weeks that plus or minus a few tenths of a percentage here or there is not significant. Whilst positive 0.3% is better than negative 0.3%, it still means the economy has flat-lined and has been for the last 18 months.

“The construction figures are particularly worrying but we should enjoy the services and goods trends.
 
“They underline the absolute necessity that we need to do is gain control of costs to remove the trade deficit and then drive growth to reduce the debt.”