UK economic recovery is consolidating
Providing positive news for all contractors, the latest British Chambers of Commerce Economic Survey shows that the UK economy continued to grow in the second quarter of 2010. This builds on the improvement in the first three months of the year – with key indicators such as employment expectation, investment plans, export orders and domestic sales all showing an increase.
Ongoing improved fortunes in the manufacturing sector are a key reason for this growth, with home sales surging by 29 points in Q2, to 30% – a level not seen since the last quarter of 2007. The service sector’s domestic sales rose 6 points, to 12%. Manufacturing export sales increased by 11 points, to 31% – its highest level since Q3 2006, and an indication that exporters are benefiting from a more competitive exchange rate. Employment in manufacturing also saw a big improvement in Q2, rising 35 points to 19%, while manufacturing employment expectations increased by 16 points, to 14%.