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Chambers of commerce see ‘every reason for optimism’ in year ahead

Chambers of commerce see ‘every reason for optimism’ in year ahead

The head of the Scottish Chambers of Commerce said the group expects the economic recovery to be “cemented” in 2014.

However, chief executive Liz Cameron warned governments on both sides of the border to keep their eye on the ball or risk losing the building economic momentum.

She was commenting as a poll by sister organisation the British Chambers of Commerce found evidence of solid growth in the UK, and increasing confidence that the economy would continue to improve this year.

The fourth-quarter BCC poll of more than 8,000 firms saw a range of key economic indicators surge past pre-recession levels seen in 2007.

The organisation estimated that GDP would grow to 0.9% in the period a marginal acceleration on the official estimate of 0.8% growth in Q3 on the back of solid data from the manufacturing sector that dispelled fears that growth seen in the third quarter was just a blip.

The vital services sector which has led the recovery and represents three-quarters of the overall UK economy also polled well, with record employment as well as export readings in the latest quarter.

However, the overall positive picture identified by the BCC was tempered by continuing concerns over access to finance and inflationary pressures.

Ms Cameron said the economy had shown strong signs of growth in late 2013, and it looked as though the upwards trajectory would continue this year.

“Next week, Scottish Chambers of Commerce will be publishing our own more detailed survey of business performance and expectations in Scotland and we will be looking at the prospects for a number of key business sectors,” she said.

“Early indicators are that 2014 could be the year when the economic recovery is cemented and there is every reason for optimism.

“But nothing can be taken for granted, and businesses will require continued attention and support from our governments at a Scottish and UK level.”

BCC director general John Longworth said the survey showed ground was being made in the economic fightback.

“Confidence is high and our members are resolute in their determination to take the recovery from being good to being truly great,” he said.

“Firms across the board believe they can create jobs, invest and export.

“But businesses have major ambitions and, to be able to meet them, more support must be provided.

“We must give companies the opportunity to get the finance they need to go out and trade in the world if we are to succeed in rebalancing the economy.”

David Kern, chief economist at the BCC, said: “It is clear that the UK recovery is likely to continue to strengthen in the short term.

“On the basis of these results, GDP growth in Q4 could well be around 0.9%, and higher full-year growth in 2013 and 2014 could follow.”

However, he warned that risks from the eurozone could have an adverse impact on exports.