FTSE 100 weak as BCC revises down 2013 14 growth forecast
The FTSE 100 is weak in trading this morning following the BCC’s downward revision of economic growth in 2013-14.
The FTSE 100 index is weak at 5854.5 points in trading this morning (December 4th) as one leading organisation revised 2013-14's growth forecast lower.
According to the British Chambers of Commerce (BCC), the economy will expand at a modest rate of one per cent next year and by 1.8 per cent in 2014, with this downgrade coming about as international trade deteriorates, while the likelihood of further austerity increases.
However, the BCC has changed its forecast for growth in the UK, raising its growth projection from -0.4 per cent to -0.1 per cent this year.
The business body explained that while British companies are resilient and have the ambition to drive the recovery, reduced prospects worldwide look to slow this progress down, while spending reductions are unlikely to change any time soon.
BCC chief economist David Kern said: "Although there will be a slow improvement over the medium-term, gross domestic product will only return to its pre-recession levels at the end of 2014."
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