Chamber of Commerce are latest to predict near zero growth in Q2

The BCC is the latest organisation to predict near zero growth in the second quarter of 2011. They predict today that the economy grew by just 0.3% since April.

The British Chamber of Commerce is the latest organisation to predict near zero growth in the second quarter of 2011. They predict today that the economy grew by just 0.3 per cent from April to June.

Their announcement follows reports in the Sunday Times that the economy has, in fact, shrunk in the latest quarter. The paper reported yesterday that:

“Britain’s economy may have shrunk by as much as 0.2% over the past three months, raising fresh concerns about the impact of the government’s tax rises and spending cuts. Economists tore up their growth forecasts on Friday afternoon in the wake of disappointing figures for manufacturing and construction.

“Citigroup, one of the world’s biggest banks, and Scotia Capital expect the Office for National Statistics will report GDP growth of -0.2% in the second quarter. JP Morgan predicts that GDP remained flat over the period… Barclays believes there was growth of just 0.2%, while Royal Bank of Scotland suggests that the official figure released on July 26 will be as weak as 0.1%.

On Thursday, the independent think tank, NIESR, predicted that growth would be just 0.1 per cent. If this was to materialise it would mean that growth for 2011 – using the Office for Budget Responsibility’s existing, and almost certainly optimistic predictions for Q3 growth – would be just 1.1 per cent. In June 2010, they predicted growth of 2.6 per cent.

The impact is likely to be higher borrowing than predicted by the OBR. The Sunday Times highlighted predictions from the Centre for Economics and Business Research that slower growth will mean that the deficit will be £25 billion higher in 2015 than expected by the OBR.

Responding to the latest news from the British Chamber of Commerce, Labour’s shadow chief secretary to the Treasury, Angela Eagle MP, said:

“After the global recession every major country needs to take difficult decisions on tax and spending cuts to get their deficits down. But we need a balanced deficit plan that puts jobs and growth first, because getting the economy moving and getting people off the dole and into work is the best way to get the deficit down. That’s why Labour has said the government should temporarily reverse its VAT rise to give the economy the jump start it urgently needs and repeat the bank bonus tax to build thousands of new homes, get young people into work and support small businesses.”

The OBR publishes its fiscal sustainability report on July 13th. The official estimates of Q2 growth follow on July 29th.

40 Responses to “Chamber of Commerce are latest to predict near zero growth in Q2”

  1. Vijay Singh Riyait

    Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw //bit.ly/nOIJy3

  2. Max Ramsay

    //t.co/9SD4MDc it seems growth for the 2nd quarter is expected to be no higher than 0.3%, oh my #austerityfail

  3. Isobel waby

    Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw //bit.ly/nOIJy3

  4. Calm Confusion

    RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw //bit.ly/nOIJy3

  5. Calm Confusion

    RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw //bit.ly/nOIJy3

  6. Paulo Coimbra

    Austerity doesn't work @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2 […] //t.co/lQ4KeH8

  7. DrKMJ

    RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw //bit.ly/nOIJy3 #NewsClub

  8. Leon Wolfson

    Yes, thanks for highlighting the fact that the Tories are rude, and need to wisecrack over serious economic issues rather than address them.

    Hurting, not working. Sadists like you…

  9. Trakgalvis

    RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw //bit.ly/nOIJy3 #NewsClub

  10. Watching You

    Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw //bit.ly/nOIJy3

  11. Michael

    Chamber of Commerce latest to predict near zero growth in Q2 l Left Foot Forward – //j.mp/pmGLge

  12. A bloke from Norwich

    RT @TheRightArticle: Chamber of Commerce predict near 0 growth 4 Q2 //j.mp/pmGLge < More economic brilliance by the boy Gideon #Tories

  13. Will Straw

    BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 //bit.ly/nOIJy3

  14. Redbridge Labour

    BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 //bit.ly/nOIJy3

  15. Nicola Smith

    BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 //bit.ly/nOIJy3

  16. neilrfoster

    BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 //bit.ly/nOIJy3

  17. Richard Johnson

    BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 //bit.ly/nOIJy3

  18. Helen Barnard

    BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 //bit.ly/nOIJy3

  19. Citizen K

    BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 //bit.ly/nOIJy3

  20. Brummie Protestor

    RT @leftfootfwd Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: //t.co/UnZcJ8z

  21. dm

    RT @TheRightArticle: Chamber of Commerce predict near 0 growth 4 Q2 //j.mp/pmGLge < More economic brilliance by the boy Gideon #Tories

  22. Len Arthur

    Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: //t.co/UnZcJ8z

  23. False Economy

    RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: //t.co/4OJgX9C

  24. Diane Hain

    RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: //t.co/4OJgX9C

  25. Ian M

    RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: //t.co/4OJgX9C

  26. Jackie Fleming

    Plan A still not working George. Chamber of Commerce are latest to predict near zero growth in Q2 //bit.ly/oPyesF

  27. Staffordshire UNISON

    Plan A still not working George. Chamber of Commerce are latest to predict near zero growth in Q2 //bit.ly/oPyesF

  28. Tweetminster

    UK Q2 GDP growth forecasts range from -0.2% to +0.3% //bit.ly/qob0ir

  29. Chris

    UK Q2 GDP growth forecasts range from -0.2% to +0.3% //bit.ly/qob0ir

  30. Kos

    RT @spbaines: Grim reading. RT @tweetminster: UK Q2 #GDP growth forecasts range from -0.2% to +0.3% //bit.ly/qob0ir $SPX $$

  31. J P Harrison

    UK Q2 GDP growth forecasts range from -0.2% to +0.3% //bit.ly/qob0ir

  32. Alberto Nardelli

    UK Q2 GDP growth forecasts range from -0.2% to +0.3% //bit.ly/qob0ir

  33. Kevin Richards

    Whats fat Pat have to say about this RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth in Q2 //t.co/MvPHEP1

  34. Karl Eastham

    BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 //bit.ly/nOIJy3

  35. David Smith

    UK Q2 GDP growth forecasts range from -0.2% to +0.3% //t.co/o5PPB85

  36. Rick

    UK Q2 GDP growth forecasts range from -0.2% to +0.3% //t.co/o5PPB85

  37. anandlakhani

    Hey Cameron, "what have you done for me lately…" ta da ta da…no really: Near Zero Q2 GDP Growth in the UK //bit.ly/naKVV7 #in

  38. Matt Bailey

    RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth in Q2 //t.co/VJJKOJZ Time to re-think, Gideon. Enough now.

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