July 7, 2009

Business sentiment improves in Britain

A survey in Britain found sentiment on business conditions had improved, but a recovery needs to be nursed along, a British Chamber of Commerce official said.

The second quarter showed welcome progress, the BCC said, summarizing a survey of 5,600 companies.

However, it is absolutely vital that the improvement in business confidence is nurtured, BCC Director General David Frost told the BBC Tuesday.

A negative set of figures "¦ suggest strongly that (the) gross domestic product continued to contract over the second quarter, said Investec economist Phillip Shaw, suggesting the Bank of England would continue with its qualitative easing program after the next policy meeting, scheduled for this week.

The Office for National Statistics said Tuesday industrial production dropped 0.6 percent in June while manufacturing activity fell 0.5 percent.

The National Institute of Economic and Social Research estimated the GDP grew in April and May after falling 1.9 percent in the first quarter. But the ONS revised its GDP estimate for the first quarter sharply lower last week to minus 2.4 percent.