Concerns for UK recovery as growth slows in Q4

BCC estimates show the economy grew between 0.4% and 0.5% in the last quarter, compared with official growth data of 0.7% in Q3. Weaknesses in the services sector were blamed for the reduced output, and the figure is particularly worrying as the full effects of the VAT increase and deficit cutting measures are yet to feed into the system. However, the BCC say another recession is unlikely and were buoyed by good export orders and manufacturing levels at their highest point in 16 years. BCC Director general, David Frost, says: "Faced with public sector cuts and cost pressures, ensur...