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What's wrong with a consumer driven recovery ?

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April 01, 2014 bcc, britain, british chamber of commerce, british pound, business confidence, capital, consumer spending, consumers, david kern, economy, finance, financial markets, gbp, insititute of economic affairs, investments, kern bcc, lea jakobiak, london, macro, market reaction, office for national statictics, ons, philip booth, philip booth iea, saxo bank, saxo capital markets, saxo tv, sterling, sterling strength, tradingfloor.com, uk, uk business confidence, uk economy, uk exports, uk growth, uk manufacturing, uk recovery, video
The big criticism of the UK recovery is that it's mainly consumer and credit driven. Well there's nothing wrong with that, according to two leading economists. Latest figures indicate Britain will grow by 2.7 percent this year, and then 2.3 percent in 2015.

David Kern, Chief Economist at the British Chambers of Commerce, says: "The recovery inevitably is driven in its early stages by consumer spending. I don’t think that is a criticism, I think that is a necessity". He adds the challenge now for the UK is to broaden its recovery.

And Philip Booth, Director at the Institute of Economic Affairs, explains he's "not really sure what the wrong sort of recovery is", as all economic activity is geared towards consumption.