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UK businesses warn of double dip risk

UK businesses warn of double dip risk
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Economist have said that the Bank of England is all but certain to leave UK interest rates unchanged when its policymakers meet this week.

That was also the feeling of the British Chambers of Commerce which said growth over the past three months – at about 0.7 percent – may mark a high point in Britain’s recovery, and government spending cuts and tax rises risk tipping it back into recession.

A BCC survey just released showed that during the second quarter UK manufacturing sales surged by the most since 2007, but the Chambers of Commerce warned the service sector, which accounts for the bulk of Britain’s GDP, is not recovering at an adequate pace and that is increasing the threat of an economic setback.

Though domestic demand was down, UK export sales saw their largest increase since 2006, the BCC survey showed.

One piece of good news, there was a substantial rise in sales of cars in the UK in June.

They were up by 10.8 percent from the same month last year, due to more business and fleet purchases.

That offset the end of a government scrappage scheme that offered motorists incentives to buy new cars to replace older models.