Chamber of Commerce are latest to predict near zero growth in Q2

The British Chamber of Commerce is the latest organisation to predict near zero growth in the second quarter of 2011. They predict today that the economy grew by just 0.3 per cent from April to June.

Their announcement follows reports in the Sunday Times that the economy has, in fact, shrunk in the latest quarter. The paper reported yesterday that:

“Britain’s economy may have shrunk by as much as 0.2% over the past three months, raising fresh concerns about the impact of the government’s tax rises and spending cuts. Economists tore up their growth forecasts on Friday afternoon in the wake of disappointing figures for manufacturing and construction.

“Citigroup, one of the world’s biggest banks, and Scotia Capital expect the Office for National Statistics will report GDP growth of -0.2% in the second quarter. JP Morgan predicts that GDP remained flat over the period… Barclays believes there was growth of just 0.2%, while Royal Bank of Scotland suggests that the official figure released on July 26 will be as weak as 0.1%.

On Thursday, the independent think tank, NIESR, predicted that growth would be just 0.1 per cent. If this was to materialise it would mean that growth for 2011 – using the Office for Budget Responsibility’s existing, and almost certainly optimistic predictions for Q3 growth – would be just 1.1 per cent. In June 2010, they predicted growth of 2.6 per cent.

The impact is likely to be higher borrowing than predicted by the OBR. The Sunday Times highlighted predictions from the Centre for Economics and Business Research that slower growth will mean that the deficit will be £25 billion higher in 2015 than expected by the OBR.

Responding to the latest news from the British Chamber of Commerce, Labour’s shadow chief secretary to the Treasury, Angela Eagle MP, said:

“After the global recession every major country needs to take difficult decisions on tax and spending cuts to get their deficits down. But we need a balanced deficit plan that puts jobs and growth first, because getting the economy moving and getting people off the dole and into work is the best way to get the deficit down. That’s why Labour has said the government should temporarily reverse its VAT rise to give the economy the jump start it urgently needs and repeat the bank bonus tax to build thousands of new homes, get young people into work and support small businesses.”

The OBR publishes its fiscal sustainability report on July 13th. The official estimates of Q2 growth follow on July 29th.

http://twitter.com/vriyait/status/90194354307739648 Vijay Singh Riyait

Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw http://bit.ly/nOIJy3
http://twitter.com/maxafax/status/90194800506191873 Max Ramsay

http://t.co/9SD4MDc it seems growth for the 2nd quarter is expected to be no higher than 0.3%, oh my #austerityfail
http://twitter.com/isobel_waby/status/90195252773793792 Isobel waby

Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw http://bit.ly/nOIJy3
http://twitter.com/calmconfusion/status/90207966610989056 Calm Confusion

RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw http://bit.ly/nOIJy3
http://twitter.com/calmconfusion/status/90207966610989056 Calm Confusion

RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw http://bit.ly/nOIJy3
http://twitter.com/x_coimbra/status/90215892939571200 Paulo Coimbra

Austerity doesn't work @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2 [...] http://t.co/lQ4KeH8
13eastie

http://www.youtube.com/watch?v=9Gi7qqvRlY0
http://twitter.com/drkmj/status/90235602993295360 DrKMJ

RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw http://bit.ly/nOIJy3 #NewsClub
Leon Wolfson

Yes, thanks for highlighting the fact that the Tories are rude, and need to wisecrack over serious economic issues rather than address them.

Hurting, not working. Sadists like you…
http://twitter.com/trakgalvis/status/90275623188172801 Trakgalvis

RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw http://bit.ly/nOIJy3 #NewsClub
http://twitter.com/nhsspy/status/90285623080001536 Watching You

Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw http://bit.ly/nOIJy3
http://twitter.com/therightarticle/status/90305368168734720 Michael

Chamber of Commerce latest to predict near zero growth in Q2 l Left Foot Forward – http://j.mp/pmGLge
http://twitter.com/foolfromthehill/status/90308149671763968 A bloke from Norwich

RT @TheRightArticle: Chamber of Commerce predict near 0 growth 4 Q2 http://j.mp/pmGLge < More economic brilliance by the boy Gideon #Tories
http://twitter.com/wdjstraw/status/90314857924145152 Will Straw

BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 http://bit.ly/nOIJy3
http://twitter.com/redbridgelabour/status/90315103232212992 Redbridge Labour

BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 http://bit.ly/nOIJy3
http://twitter.com/nicolatuc/status/90317807933333504 Nicola Smith

BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 http://bit.ly/nOIJy3
http://twitter.com/neilrfoster/status/90318705086562304 neilrfoster

BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 http://bit.ly/nOIJy3
http://twitter.com/mr_onions/status/90321620404682752 Richard Johnson

BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 http://bit.ly/nOIJy3
http://twitter.com/helen_barnard/status/90323990001893377 Helen Barnard

BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 http://bit.ly/nOIJy3
http://twitter.com/woolfiesmith/status/90327793145090049 Citizen K

BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 http://bit.ly/nOIJy3
http://twitter.com/brumprotestor/status/90339121851154432 Brummie Protestor

RT @leftfootfwd Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: http://t.co/UnZcJ8z
http://twitter.com/mraxtl/status/90339122912296961 dm

RT @TheRightArticle: Chamber of Commerce predict near 0 growth 4 Q2 http://j.mp/pmGLge < More economic brilliance by the boy Gideon #Tories
http://twitter.com/lenarthur2/status/90342872309698560 Len Arthur

Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: http://t.co/UnZcJ8z
http://twitter.com/falseecon/status/90368885366325248 False Economy

RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: http://t.co/4OJgX9C
http://twitter.com/dianehain/status/90369428339965952 Diane Hain

RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: http://t.co/4OJgX9C
http://twitter.com/mancman10/status/90372232060215296 Ian M

RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth of 0.3% in Q2, reports @wdjstraw: http://t.co/4OJgX9C
http://twitter.com/jackielive/status/90416240031571968 Jackie Fleming

Plan A still not working George. Chamber of Commerce are latest to predict near zero growth in Q2 http://bit.ly/oPyesF
http://twitter.com/interuncut/status/90419871321563137 InternationalUNCUT

No real surprise. http://fb.me/12Adwy1pP
http://twitter.com/staffsunison/status/90455950133182465 Staffordshire UNISON

Plan A still not working George. Chamber of Commerce are latest to predict near zero growth in Q2 http://bit.ly/oPyesF
http://twitter.com/tweetminster/status/90492224848150528 Tweetminster

UK Q2 GDP growth forecasts range from -0.2% to +0.3% http://bit.ly/qob0ir
http://twitter.com/chrisjbd/status/90492759458328576 Chris

UK Q2 GDP growth forecasts range from -0.2% to +0.3% http://bit.ly/qob0ir
http://twitter.com/traderkos/status/90493237428625408 Kos

RT @spbaines: Grim reading. RT @tweetminster: UK Q2 #GDP growth forecasts range from -0.2% to +0.3% http://bit.ly/qob0ir $SPX $$
http://twitter.com/johnph7/status/90494803762094080 J P Harrison

UK Q2 GDP growth forecasts range from -0.2% to +0.3% http://bit.ly/qob0ir
http://twitter.com/albertonardelli/status/90507987390709761 Alberto Nardelli

UK Q2 GDP growth forecasts range from -0.2% to +0.3% http://bit.ly/qob0ir
http://twitter.com/cllrkrichards/status/90531927370641408 Kevin Richards

Whats fat Pat have to say about this RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth in Q2 http://t.co/MvPHEP1
http://twitter.com/karleastham/status/90535968137945088 Karl Eastham

BCC join NIESR, Citigroup, Scotia Capital, JP Morgan, Barclays & RBS in predicting near zero growth in Q2 http://bit.ly/nOIJy3
http://twitter.com/davidsmith1978/status/90647234227617793 David Smith

UK Q2 GDP growth forecasts range from -0.2% to +0.3% http://t.co/o5PPB85
http://twitter.com/flipchartft/status/90647542123085824 Rick

UK Q2 GDP growth forecasts range from -0.2% to +0.3% http://t.co/o5PPB85
http://twitter.com/anandlakhani/status/90679284720607232 anandlakhani

Hey Cameron, "what have you done for me lately…" ta da ta da…no really: Near Zero Q2 GDP Growth in the UK http://bit.ly/naKVV7 #in
http://twitter.com/mattpbailey/status/90704093080862720 Matt Bailey

RT @leftfootfwd: Chamber of Commerce are latest to predict near zero growth in Q2 http://t.co/VJJKOJZ Time to re-think, Gideon. Enough now.