According to the CBI ‘growth indicator’ private sector output growth is maintaining its ‘healthy pace’.
The survey involved 790 respondents across the manufacturing, retail and service sectors. It registered strong growth expectations, with a balance of +29%. The balance is derived from the difference between the number of respondents expecting increases to a given variable versus those expecting a fall.
In the quarter to July, output in the manufacturing sector grew at its strongest pace for five months. Business and consumer services have also maintained solid growth while retail sales rose on a year ago, the CBI said.
“The recovery shows little sign of slowing and it’s looking likely that GDP has surpassed its pre-crisis peak,” said Katja Hall, CBI deputy director-general. “There are signals that the recovery may now be on a more sustainable footing, with growth becoming more broad-based as business investment in particular grows strongly,” she added.
Hall cautioned however that it’s not all rosy as there are still long-standing issues around boosting exports and the danger that disappointing productivity could impact wages and household spending.
She also noted that geopolitical issues in Ukraine and parts of the Middle East could make the global economic environment tougher for UK business to thrive in.