Published On: Sun, May 31st, 2015

CBI Surveys Show The UK’s Economy Is Growing Better Than Expected


Following a tough first quarter the CBI’s recent surveys show better than expected growth.

The UK’s economy is growing at its fastest speed in over a year, says the Confederation of British Industry (CBI), the business lobbying group whose estimation is expected to relieve worries over a slowdown in the economy at the beginning of 2015.

“As we move through the second quarter, growth has cranked up several gears and businesses expect that faster pace to continue,” said Rain Newton-Smith, the CBI’s director of economics adding that the CBI believed “weaker-than-expected” growth at the start of the year would be short-lived, supported by the study figures, which showed that the economy has gained momentum in all main sectors, including manufacturing and retail.

Derived from surveys of more than 800 companies ranging from restaurants and plumbing to banking and finance, the CBI suggests that business activity has gained pace tangibly in the last three months with all sectors of the economy growing.

In April official figures showed the UK economy grew by 0.3 percent in the first quarter of 2015, the slowest quarterly growth for two years, which reportedly created fears that the country might be set for a slowdown in the near future.

With the economy in the Eurozone improving, which is the UK’s largest trading partner, the CBI said growth could further be boosted.

“A stellar increase in activity in the business and professional service sector and retail sales bounding ahead are clear indications of strong business and consumer confidence and increased spending power,” said Mr. Rain, “UK exports are likely to be helped by renewed momentum in the euro area but the stronger pound and weak demand in many overseas markets continue to pose challenges.”

The CBI survey figures showed a “stand-out” performance for business and professional services, which includes accountancy, legal and marketing firms. The latter sector having recorded its fastest growth in business volumes since February 2006 which was the main driver of the overall acceleration in economic growth.

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