Gross domestic product figures (GDP) for the second quarter of 2017 are a further sign of the economy showing its resolve, Greater Birmingham business leaders said today.
GDP was estimated to have increased by 0.3 per cent between Q1 and Q2. Growth in Q2 was dominated by the service sector which grew by 0.5 per cent.
There was also relatively strong growth in government spending and investment, although household spending (0.1 per cent) and business investment (unchanged) during the same period were “sluggish”.
Greater Birmingham Chambers of Commerce chief executive Paul Faulkner (pictured) said: “It was reassuring to see a pick-up in GDP growth levels for Quarter 2 as once again the British economy demonstrated its resoluteness in the face of wider political uncertainty.
“It was also heartening to see an increase in service sector output which made up for the slower level of growth in the manufacturing and construction sectors.
“Nevertheless it remains to be seen how long service sector growth can be sustained given the relative slowdown in consumer spending caused by higher inflation levels and weak wage growth.
“Business Investment was also revealed to be sluggish this quarter, a theme we saw reflected in our Q2 Quarterly Business Report, as local firms reported stagnant investment levels in light of Brexit uncertainty.
“Surveying for our current Quarterly Business Report is now open and it will be interesting to see if these are trends are still prominent in the latest findings.”