Chamber Responds to ONS GDP Figures for July

Date: 11/09/2020
Author: Greater Manchester Chamber of Commerce
Company: Greater Manchester Chamber of Commerce

Commenting on the latest GDP figures, Subrahmaniam Krishnan-Harihara, Head of Research at Greater Manchester Chamber of Commerce, said: "The month of July saw the strongest monthly growth in GDP in a long time. The Chamber’s First and Second Recovery Tracker surveys covering the month of July showed significant increases in both demand and cash positions. That finding has been confirmed by today’s GDP data release. 

"While it is good news that the UK economy recorded strong monthly growth, it must be remembered that the growth rate is accentuated by the low base caused by the historic decrease in economic activity during the Coronavirus pandemic. 

"The Chamber’s Fourth Recovery Tracker also showed that demand has stabilised and there was not further improvement in economic activity in the month of August.  

"Over three-quarters of respondents to GM Chamber’s Covid-19 Business Monitor and Recovery Tracker surveys had accessed one or more of the support schemes offered by the Government. This has resulted in some businesses having taken on a lot debt and temporary measures such as furloughing staff to protect cash flow and preserve jobs. This is likely to have an adverse impact when deferred tax bills are due and loan repayments have to be made. Ensuring continued recovery requires concerted action to increase consumer confidence and support businesses, especially in areas where local lockdowns are being considered."

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