The British Chambers of Commerce (BCC) has slightly downgraded its expectations for GDP growth in 2018 from to 1.3%, down 0.1% from its previous forecast 1.4%.

The business group also lowered its GDP growth forecast for 2019 from 1.5% to 1.4%, attributing the downgrades to a "more lacklustre outlook for consumer spending, business investment and trade".

Despite real wage growth entering positive territory in May 2018, this is not expected to lead to a substantial increase in consumer spending as household finances remain stretched.

Additionally, growth in business investment is set to slow to 0.9% in 2018, down from 2.4% in 2017, as a result of the high costs and ongoing uncertainty faced by businesses.

Adam Marshall, director-general of the BCC, said:

"The next few years are set to be a testing time for business in the UK.

"What firms and their employees need is much more visible evidence that ministers are committed to getting the basics right - which would enable business in turn to invest, take risks and grow."

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