Cumbria's Chamber of Commerce have reacted to the UK's latest economic growth figures. 

The figures from the Office of National Statistics (ONS) showed that the economy expanded by 0.1 per cent in February compared with 0.8 per cent in January.

Of the growth, the statistics show that services grew by 0.2 per cent, mainly driven by the tourism sector allowing for services to become the main contributor to February's growth in GDP.

The ONS statistics also show that the UK economy is 1.5 per cent above its pre-coronavirus pandemic level in February 2020.  

Richard Miller, business engagement and policy manager for Cumbria Chamber of Commerce, said whilst economic output grew in February, the slowdown in growth indicates that the 'UK economy was losing steam' even before the impact of Russia's invasion in Ukraine. 

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"Tourism and accommodation services recorded the strongest improvements as the end of Plan B restrictions and reduced concerns over omicron supported activity. But while the positive figures for the visitor economy appear good for Cumbria, this has to be viewed in the light of spiralling fuel and wider cost of living prices, which are expected to impact on demand moving forward, alongside the staffing and cost challenges faced by the sector.

"And the overall picture masks declines in manufacturing and construction, also key sectors for our economy. Growth was also impacted by a significant drop in NHS Test & Trace services and vaccine activity.

Mr Miller highlighted that the figures are indicative of a 'prolonged period of considerably weaker growth' as rising inflation, energy fuel hikes, higher taxes damaging UK output, including consumer spending and business investment. 

"At the very least the Government must act now to provide urgent financial support, through the expansion of the energy bills rebate scheme, to include smaller and energy intensive businesses, and an SME energy price cap to protect smaller businesses from some of the price increases," he said. 

 

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