–UK BCC: Q1 Services Home Deliveries Balance 6 Vs -2 Q4
–UK BCC: Q1 Services Home Orders Balance 3 Vs -7 In Q4}
–UK BCC: Q1 Manufacturing Home Orders Balance -3 Vs -5 In Q4
–UK BCC: Q1 Manufacturing Home Sales Balance 1 Vs 3 Q4
–UK BCC: Q1 Manufacturing Export Sales 20 Vs 20 Q4
–UK BCC: Q1 Manufacturing Export Orders 21 Vs 17 Q4
–BCC Says UK Recovery Looks Weak; Serious Risk Of Setback

LONDON (MNI) – The British Chambers of Commerce Economic Survey for
Q1 show some further improvement in the services sector but new weakness
in key survey readings for the manufacturing sector.

The BCC said that the results showed that the UK upturn is still on
course but added that the “recovery is weak and serious risks of a
setback remain”.

The survey showed the services sector home sales balance improving
to a reading of 6 from -2 in Q4 while services home orders rose to a
balance of 3 compared with -7 in Q4.

Manufacturing home sales stood at 1 compared with a balance
of 3 in Q4 while export sales were unchanged at a balance of 20.

The survey showed confidence remains resilient, although weak
relative to pre-recession standards.

Exports have improved and remain strong for manufacturing. The
export orders balance grew from 17 in Q4 to 21 in Q1. But key indicators
such as investment in plant and machinery and cashflow are still
negative across both sectors, the BCC said.

In manufacturing, the BCC noted that key domestic measures point to
stagnation in Q1 – with sales barely positive and orders still negative
while in services, on the other hand, both sales and orders have turned
positive.

Employment over the last three months in manufacturing has recorded
a large decline. It has moved back into negative territory, falling from
3 in the fourth quarter to -16 in Q1, the BCC noted.

The Bank of England, in its latest Inflation Report, forecast an
acceleration in growth in the first quarter, predicting GDP would come
in near flat on the year, implying a rise of some 0.7% on the quarter,
up from the latest estimate of 0.4% quarterly growth in Q4.

Commenting on the BCC results, David Frost, Director General of the
British Chambers of Commerce, said:

“Although these results are mixed, they contain some positive
features – most notably the service sector’s improvement and relatively
strong export balances for manufacturers”.

“Businesses are showing resilience despite difficult and uncertain
trading conditions. Confidence is building, and the Government must
nurture this with well-thought out policies that support business growth
and job creation. Special attention must be paid to bolstering our
exports in goods and services, which will help rebalance the economy
away from an over-reliance on debt and the public sector”.

–Contact: tel: +44 207 862 7492; email: dthomas@marketnews.com

[TOPICS: MABDS$,M$B$$$,MT$$$$]