BCC: Worst of the recession is over
08 July 2009
The worst of the recession is over, but the government needs to ensure it does not crush the green shoots of recovery, according to new research.
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Enterprise
The worst of the recession is now over, but a recovery is by no means guaranteed, the British Chambers of Commerce (BCC) has warned.
According to the body's latest quarterly Economic Survey, most key indicators in both the service and manufacturing sectors improved during the last three months, although almost all of them remain in negative territory.
It also revealed that confidence has increased and now shows a positive balance for the first time since the third quarter of 2008.
However, David Frost, director-general of the BCC, warned that unless the government takes action to nurture these green shoots, future problems could lie ahead.
"Our economy is based on confidence, and wealth-creating businesses need to know they will be given the freedom and flexibility to drive the UK out of recession and into a sustainable recovery," he said.
The government must ensure that growth and employment are not stifled by red tape and taxation, Mr Frost added.
Last month, the Centre for Economic and Business Research warned that the recession is likely to be "saxophone shaped" - a phrase it used to describe the sluggish period of growth expected to arrive in 2010.
