The British Chambers of Commerce (BCC) has downgraded its economic forecast for the next three years, citing ‘sluggish’ business investment and household consumption.
In a new report, the business group downgraded its growth expectation for 2017 from 1.6% to 1.5%, and from 1.2% to 1.1% for 2018. Additionally, it now expects the UK economy to grow by 1.3% in 2019, a slight downgrade from its previous forecast of 1.4%.
The BCC also predicts that inflation will peak at 3% during the final quarter of this year, outpacing earnings until 2019.
It is urging the government to ‘fix the fundamentals’ of the UK economy over the coming year. The government must also look to ‘answer the practical questions’ in regard to Brexit and trade, in order to provide UK businesses with clarity, the BCC stated.
Commenting on the BCC’s forecasts, Dr Adam Marshall, its Director General, said: ‘Despite pockets of resilience and success, and strong results for some UK firms, the bigger picture is one of slow economic growth amid uncertain trading conditions.
‘Brexit uncertainty still lingers over business communities, and is undermining many firms’ investment decisions and confidence.
‘While the recent Budget made some welcome steps in the right direction, concerted and sustained action to fix the fundamentals is needed to encourage business investment and growth.’