THE economy in Somerset is on the up, but it’s too early to increase interest rates, according to a business leader in the county.

Somerset Chamber of Commerce chief executive Neil Murphy said national gross domestic product figures showed a 0.7% increase in the quarter from April to June, following a 0.4% rise in the first three months of 2015.

While the statistics are mirrored locally, Mr Murphy is calling on the Government to do more to secure the UK’s economy before raising the cost of borrowing.

He said: “The latest growth data is welcome news and reflects the chamber’s view that on the whole Somerset is enjoying a good period of economic growth.

“While caution should still be exercised, we are expecting this trend to continue.

“Somerset has a mixed economy, with manufacturing the largest sector.

“The national statistics indicate that manufacturing growth slipped back in Q2, and while I have no local data to contradict this, the feedback I have from local manufacturing businesses does not support an overall decline.

“Manufacturing in the region is strong and with some of opportunities opening up in the near future, we expect manufacturing to prosper in the coming months and years.

“Now is not the time for an interest rate rise, and the Government needs to continue to push through initiatives designed to ease the cost of doing business.

“There is still more to be done with business rates and other significant business costs before we can really claim to be in full recovery.”

The Somerset Chamber of Commerce is hosting its annual Bank of England update breakfast on Wednesday, September 2, at The Holiday Inn, Taunton.

Geoff Harding, the Bank’s deputy agent for the South-West, will discuss the current economic situation and summarise the Bank’s views on the prospects for the British economy over the next two to three years.