The UK economy is on the brink of leaving recession, according to the results of the British Chambers of Commerce economic survey for the fourth quarter of 2009.

The BCC said that the survey revealed that there have been improvements in many areas, most strikingly in manufacturing.

"Businesses are showing resilience despite difficult and uncertain trading conditions. Confidence is improving, and the boost in exports must be nurtured in order to strengthen Britain's trade position globally, and to help rebalance the economy away from an over-reliance on the public sector," said David Frost, director general of the BCC.
With improvements in most key national indicators, the Q4 results support the view that we are on the brink of leaving recession

However, while the majority of sections of the economy still showed signs of growth in the final quarter of last year, the pace of the growth in many sections had slowed from the previous three months. In particular the service sector in the UK is showing signs of weakness.

The BCC have warned that UK productivity could be hit if sharp falls in business capital spending are not reversed and has also called for the 1% increase to employers' National Insurance Contributions planned for 2011 to be scrapped.

"With improvements in most key national indicators, the Q4 results support the view that we are on the brink of leaving recession. However, with a number of critical measures still in negative territory, the economy is struggling to enter the recovery phase," said David Kern, chief economist at the BCC.

The UK has been in recession - the consecutive quarters of negative growth - since January 2009 for the first time since 1991.