UK economy grows at fastest rate in a year says CBI
Dismayed by the weak GDP growth announced earlier this week? Don't be, says the Confederation of British Industry (CBI).
In contrast to the tiny 0.3 per cent first quarter growth revealed in official figures last month, the CBI has argued that Britain's private sector recorded its strongest economic growth for a year in the three months to May.
The rate of the UK economy's growth is actually increasing according to the CBI's growth indicator which combines economic data with surveys of 811 businesses.
All sectors of the UK economy are now growing, say the CBI, who also predict for further improvements as the Eurozone recovery continues.
Read more: UK economy doing better than GDP figures suggest
The CBI's Director of Economics Rain Newton-Smith commented:
As we move through the second quarter, growth has cranked up several gears and businesses expect that faster pace to continue. This supports our belief that the weaker-than-expected GDP growth in the early months of 2015 will be short-lived.
A stellar increase in activity in the business and professional service sector and retail sales bounding ahead are clear indication of strong business and consumer confidence and increased spending power.
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.
Last month the Office for National Statistics (ONS) surprised economists by announcing a growth rate for January to March half the rate of the last three months of 2014.
The CBI's growth indicator reveals "stellar" growth in the business and professional services sector, "modest" growth in manufacturing and "strong" in the retail sector.