Britain's economy ended 2019 in a 'stagnant' state

Britain’s economy ended 2019 in a ‘stagnant’ state amid long-term uncertainty coupled with rising business costs, report reveals

  • Research by British Chambers of Commerce suggested ‘protracted weakness’ across economy, affecting firms in manufacturing and services
  • Investment plans remain weak, while cash flow has improved only slightly from its lowest level in eight years, said BCC
  • Survey of over 6,400 businesses, covering final quarter of 2019, highlighted a worsening picture in services sector 

The UK economy ended 2019 in ‘stagnation’ amid long-term uncertainty and rising business costs, a report warns.

Research by the British Chambers of Commerce (BCC) suggested a ‘protracted weakness’ across the economy, affecting firms in manufacturing and services.

Investment plans remain weak, while cash flow has improved only slightly from its lowest level in eight years, said the BCC. 

Its survey of more than 6,400 businesses, covering the final quarter of 2019, highlighted a worsening picture in the services sector, which accounts for most economic output.

The UK economy ended 2019 in ‘stagnation’ amid long-term uncertainty and rising business costs, a report warns. Research by the British Chambers of Commerce (BCC) suggested a ‘protracted weakness’ across the economy, affecting firms in manufacturing and services

Suren Thiru, head of economics at the BCC, said: ‘The UK economy limped through the final quarter of 2019.

‘The fourth quarter was characterised by a broad-based slowdown in the dominant services sector. 

Indicators in the manufacturing sector remain very weak and the near-term outlook for the sector remains challenging.

Investment plans remain weak, while cash flow has improved only slightly from its lowest level in eight years, said the BCC. Its survey of more than 6,400 businesses, covering the final quarter of 2019, highlighted a worsening picture in the services sector, which accounts for most economic output. (File image)

‘A faltering service sector together with listless manufacturing activity points to a downbeat out-turn for GDP growth in 2019.’

BCC director-general Dr Adam Marshall said: ‘The end of political deadlock must bring action to renew business confidence and tackle prolonged stagnation.

‘The Government must move quickly to ensure that Brexit is done right.

‘A clear future trading relationship with the EU is crucial to many firms’ investment and growth prospects.’

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