THE return of the UK economy to technical recession should not be allowed to undermine confidence in a sustainable recovery, the leader of Suffolk Chamber of Commerce has warned.

Chamber chief executive John Dugmore says that official figures showing a 0.2% contraction in the overall economy during the first quarter of 2012, on top of a 0.3% decline in Gross Domestic Product (GDP) at the end of last year, do not reflect the current experience of many businesses in Suffolk.

“The latest GDP figures are disappointing, but there is also some frustration as we feel these figures paint an unduly pessimistic picture of the state of the economy,” he said.

“Business surveys, including our very own Quarterly Economic Survey, have shown a more positive picture, and we believe these give a more accurate indication of the underlying trends in the economy.”

And Mr Dugmore backed a British Chambers of Commerce call for the main priority for the Government to be minimising any possible damage to business confidence coming from the latest figures.

“There has been a lot of hard work done and there is a lot more to do. We need to see a reallocation of priorities within Plan A from the Government that will bolster business growth,” he added. “That means reducing regulation, encouraging exports and improving infrastructure.