In response to the deteriorating economic situation, BCI is focusing its energies on supporting its members through the recession. In particular, we are working hard to articulate our members’ views and experiences of economic downturn to key local, regional and national decision-makers, notably the Regional Economic Council, Bank of England, AWM and national government, including the Prime Minister. Signs of recovery are tentative and we are working with our membership to ensure that their needs are heard by local decision makers.
BCI expects the Monetary Policy Committee to hold interest rates for the remainder of 2010 given its attempt to reignite the ailing economy. Sales and order figures are showing signs of stability but the recovery remains fragile and setbacks are evident in the last quarter. Export sales have slowed, whilst cash flow continues to hinder the business community.
In its last Quarterly Economic Survey, BCI did call for the Government to publish a credible plan to reduce the budget deficit and restore confidence. The emergency budget has gone some way to alleviate concerns and now we remain to see whether the Government’s actions will help to secure sustainable medium-term growth.