Responding to the latest GDP figures published this morning by the ONS, the British Chambers of Commerce (BCC) has issued an upbeat perspective for UK PLC.

David Bharier, BCC Head of Research, said: "The UK has had a strong start to the year and today's data showing 0.9% growth in GDP in the three months to May is better than expected. Growth for May itself also ticked up at 0.4%, with the services sector performing well. This is further evidence that the economic shocks of the last five years are winding down as businesses get back onto a growth footing.

"Our latest economic survey, published earlier this week, showed business confidence has improved. However, that positive sentiment is not yet translating into increased investment for most SMEs. The BCC's most recent quarterly economic forecast expects GDP growth of 0.8% for the whole of 2024.

"It's important that the new Government capitalises on this momentum, and it was encouraging to hear the Chancellor focus on boosting growth in her first speech on Monday. This is a major priority for businesses, especially after five years of economic shocks.

"We've been clear about where government should be focused to unlock investment. Our Future of the Economy report calls for an industrial strategy with green innovation at its heart, better skills planning, business rates reform, improving our trade relationship with the EU and helping SMEs access the opportunities of AI."

However, the latest trade data from the ONS this morning is not without concern.

William Bain, the BCC's Head of Trade Policy said:  "UK goods trade performance during May was weak, with the primary drivers in reduced EU trade being lower aircraft and automotive sales, in both directions. UK imports of chemicals and food from the EU were also noticeably lower and are worth keeping an eye on for future trends.

"But the sharp fall in goods trade with the EU, and a smaller decline with rest of the world was partially offset by a growth in services trade during May.

"We will continue our early engagement with the new Government on key trade issues. Export growth must be a core part of the industrial strategy to raise economic growth and competitiveness, alongside plans for critical imports and supply chains."

Looking at the UK trade picture in detail, goods imports and exports fell in May 2024, being only partially offset by a rise in UK services trade in the same month. There was a big drop off on imports from the EU, although lower food imports were only one factor identified among several others.

Excluding inflation, the volumes of goods imports into the UK were down 5.2% month on month, with a large 7.6% fall in EU imports, and a smaller 2.2% decrease for the rest of the world. Goods exports fell 2.8% month on month, with a 4.7% decline in export volumes to the EU and a smaller 1% fall to the rest of the world. Goods export values have also declined over the three months to the end of May.