UK Economic Recovery: BCC Warns of 'First Alarm Bell'

The British Chambers of Commerce warned that the UK's weakest rate of export growth in two years is the "first alarm bell' for the country's economic recovery.

According to the BCC's survey, which was conducted between 25 August and 15 September and based on responses from 7,241 firms, a big slowdown in manufacturing was also a worrying observation despite domestic demand for services growing at a near-record pace.

"The strong upsurge in manufacturing at the start of the year appears to have run its course. We may be hearing the first alarm bell for the UK," said BCC director-general John Longworth.

The BCC said growth in domestic sales and orders for manufacturers slowed sharply from a record high in the second quarter this year to its lowest since the second quarter of 2013.

Goods exports growth was also at it its lowest since the fourth quarter of 2012.

Services exports grew at the slowest rate since the third quarter of 2012, the BCC added.

On 8 October, the Office for National Statistics (ONS) revealed that a weakened European trading environment slowed the UK's industrial sectors growth.

Industrial output was up by 2.5% in August – falling short of the 2.6% that was forecasted by economists.

Manufacturing output rose by 0.1%, which breaks the pattern of the last three Augusts where there was a decline.