Economy ‘out of recession but still weak’

Britain has come out of recession but is still not strong, the British Chambers of Commerce (BCC) has claimed.

The organisation has predicted economic growth of 0.5 per cent in the third quarter (Q3), but said its survey of businesses indicated the picture is still "stagnant".

Commenting on the situation, chief economist at the BCC David Kern said: "The Q3 2012 results confirm that UK economic performance remains weak and inadequate."

He said that while the BCC disputes that the UK has actually spent three quarters in technical recession, action does need to be taken to get the economy out of its prolonged trough.

Those struggling with debt made worse by joblessness may agree and hope for action to bolster the economy.

Investment Shroeders has argued that chancellor George Osborne may have enough leeway to avoid any "fiscal tightening" in the near future and said this could be wise because it could help the UK economy if, as it expects, the eurozone crisis deepens with a Greek exit.

By Joe White