U.K. Recovery Stronger Than First Thought: BCC

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March 10 (Bloomberg) –- British Chambers of Commerce Chief Economist David Kern discusses their latest forecast for growth and the reasons behind the numbers with Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

You raise your forecast for growth for the u.k. to this year and next year.

What is behind that?

The recovery is a little bit stronger than we thought.

The economy is moving ahead.

That is good news after a long time of a bad news.

Downward revisions.

It is good news because very soon all of the negative growth will be beefing up probably a quarter earlier than originally anticipated.

Indeed.

What will be below?

What you have to remember is we should have been much higher.

It should've been up.

Where will we be next quarter if our forecast is not, will be as deadly where we are.

Marginally higher.

If the economy continues normally, we would have been putting percent higher.

It is never good news.

A bit of psychological difference.

The implications are no greater than that.

It is good news because we are so much below and we are there again we are going up.

The economy is growing.

We have to make sure that the quantity of the recovery becomes stronger and bigger.

The economy is emerging.

The recovery is not a balanced enough yet.

So far, too much reliance on a strong housing market and consumer spending.

That is good news.

We need more investment.

Because if it does not happen, it could -- i read a piece of that was talked about young, unsung heroes being in the professional services market.

Maybe manufacturing or financial services, may not have lived up to expectations.

Where is the growth coming from?

Professional services does not seem like something increasingly playing a part in our global footprint.

You are very right.

That is good news again.

We have a services economy.

Manufacturing is very important.

It is a small sector.

Only 10% of the economy.

Services among not just professional, but overall, it is 80% to stop most of those were in services.

If that is not just manufacturing but services inc.

Recently, making a contribution.

Business in general.

It is an important factor.

Unlike manufacturing services, more diverse today.

The rebalancing toward other industries besides financial should be welcome, right?

When i toggle bar rebalancing, not just so much manufacturing services -- when i talk about rebalancing, not just so much made vegan services but everything.

-- so much manufacturing services about everything.

Levels below what they were.

About 2008, three or four years.

It is going up.

Investment now, the economy today, it is approach it where it was in 2008. if you take investments, it is 15% lower.

Investment has made a big loss.

The debt has made a big impact for productivity which is not as strong.

It has made wages lower than they should be.

Investment is up to criticism.

Quickly david, we will cut --

This text has been automatically generated. It may not be 100% accurate.

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