UK economic growth steady but pace slowed: CBI

The latest CBI Growth Indicator is based on the survey of 748 respondents, bringing together economic-activity survey data across the manufacturing, retail and service sectors, showed the pace of growth was broadly stable, having weakened over the last two months.

The number of firms reporting a rise in output was +13 per cent, a shade below the +14 per cent reported last month but above the long-run average of +5 per cent.

“Growth was mainly driven by the business and consumer service sectors with manufacturing remaining one of the more sluggish sectors in the economy and distribution taking a hit,” CBI said on its website.

For the next three months, expectations are the weakest in the last two years at + 17 per cent, but well-above the average of + 10 per cent.

“Growth in the economy is steady this month, but momentum is slower than in the first half of the year,” said Rain Newton-Smith, CBI director of Economics.

“Business and consumer services are stoking the economic fire, but while manufacturing has seen a modest improvement, firms in the sector are still expecting to see a fall in output,” she added.

According to her, “The main risks to the UK economy still stem from outside, particularly fragilities in emerging markets and the potential for global financial market volatility.” (RKS)

Fibre2Fashion News Desk – India