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UK private sector growth picks up in Q4: CBI
06 Jan '16
2 min read
Economic growth across UK's private sector picked up in the last quarter of 2015, according to the latest Confederation of British Industry (CBI) Growth Indicator.
The survey of 766 respondents, which comprises economic activity across manufacturing, retail and business and consumer services sectors, found growth improving following weaker figures reported last month.
The balance of firms reporting rising output was +20 per cent, compared with +13 per cent in November, well above the long run average of +5 per cent.
Recovering growth across the retail and wholesale sectors was buttressed by a strong year end among business and professional services, though manufacturers, especially exporters, continue to face difficult times.
Overall, the economy is expected to grow at a similar pace over the next three months (+20 per cent), well above the long-run average (+10 per cent).
“The UK economy has finished the year strongly, with business services acting as a lightning rod for growth.
“Nonetheless, there is no room for complacency in 2016 as significant challenges to global growth remain. Many emerging markets are facing a testing time, with China moving to a slower growth path and other emerging economies being buffeted by low commodity prices, capital outflows and currency depreciation,” said CBI Director-General Carolyn Fairbairn.
She said sector-wise, the picture differs markedly. While manufacturers are having a tough time, with the strength of sterling hitting their competitiveness in the Eurozone, the slowdown in emerging markets is weighing on export demand. And the North Sea industry and its suppliers are feeling the impact of falling global oil prices. (SH)
The survey of 766 respondents, which comprises economic activity across manufacturing, retail and business and consumer services sectors, found growth improving following weaker figures reported last month.
The balance of firms reporting rising output was +20 per cent, compared with +13 per cent in November, well above the long run average of +5 per cent.
Recovering growth across the retail and wholesale sectors was buttressed by a strong year end among business and professional services, though manufacturers, especially exporters, continue to face difficult times.
Overall, the economy is expected to grow at a similar pace over the next three months (+20 per cent), well above the long-run average (+10 per cent).
“The UK economy has finished the year strongly, with business services acting as a lightning rod for growth.
“Nonetheless, there is no room for complacency in 2016 as significant challenges to global growth remain. Many emerging markets are facing a testing time, with China moving to a slower growth path and other emerging economies being buffeted by low commodity prices, capital outflows and currency depreciation,” said CBI Director-General Carolyn Fairbairn.
She said sector-wise, the picture differs markedly. While manufacturers are having a tough time, with the strength of sterling hitting their competitiveness in the Eurozone, the slowdown in emerging markets is weighing on export demand. And the North Sea industry and its suppliers are feeling the impact of falling global oil prices. (SH)
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