Export sales and orders in the UK’s service sector have reached record highs, according to the British Chambers of Commerce (BCC).
The Q1 Quarterly Economic Survey recorded a balance of +38 per cent for export sales and +39 per cent for export orders. These are the highest recorded balances in the survey’s 25 year history.
- Almost all key service sector balances are above pre-2007 levels
- The employment balance in the service sector fell 13 to +16 per cent
- Six manufacturing balances are at all-time highs, including domestic sales, domestic orders and employment expectations
- Manufacturers and service-based firms remain concerned by inflation.
John Longworth, director general of the BCC, said:
“Confidence is high and our members are determined to continue driving the recovery. We are brilliant at services and very successful at exporting our knowledge-based industries all over the world. This includes everything from accountancy and marketing through to literature and the IT sector.”
David Kern, chief economist at the BCC, said:
“The results of our survey suggest that growth is strengthening in the short-term, and support our recent forecasts that the economic recovery is moving at a solid pace. But challenges persist and despite this progress, the recovery is not yet secure.
“UK growth is still reliant on consumer spending, driven by a resurgent housing market and a declining savings ratio.
“Investment and exports must play a larger contribution to our economic future, or else there is a risk that our recovery could stall.”