LONDON (dpa-AFX) - UK's underlying economic conditions stagnated in the second quarter, the quarterly economic survey from the British Chambers of Commerce showed Monday.
The balance of manufacturing firms reporting improved domestic orders fell to a 7-year low of +4 in the second quarter from +9. Meanwhile, services firms' balance doubled to +10 from +5.
Nonetheless, the lobby said moderate pick-up in service sector activity in the second quarter was insufficient to offset significant drops in the first quarter.
The balance of manufacturing firms reporting increased domestic sales dropped to +10 from +15. On the other hand, the balance of services firms reporting increased domestic sales improved to +17 from +10.
Price pressures for services firms and manufacturers declined to their lowest level since 2016.
The balance of manufacturing firms increasing investment in plant/machinery rose to +11 and investment in training stayed level +14, the weakest since third quarter of 2012.
The balance of services firms looking to increase investment in plant and machinery rose to +5, and to +14 in training.
'These results indicate that underlying economic conditions in the UK remain decidedly downbeat, with intensifying uncertainty over Brexit, the rising costs of doing business in the UK and a sluggish global economy combining to suppress key drivers of growth,' Suren Thiru, Head of Economics at the BCC said.
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