UK economy will grow more strongly than expected, says BCC

British Chambers of Commerce says British consumers are showing resilience to Brexit vote, but warns of rising inflation

Robust consumer spending and a brighter outlook for trade and investment will mean the UK's economic slowdown this year is less severe than previously feared, the British Chambers of Commerce has predicted.

But in its latest set of economic forecasts, published as the UK prepares to embark on Brexit negotiations, the business group cut its outlook for 2018 and warned higher inflation would take a chunk out of household budgets.

Related: UK economy ends 2016 on high - but rising import prices starting to bite

Related: UK economy to hit near standstill as Brexit vote hurts investment - BCC