Business and professional services sector driving growth – CBI
THE UK’s rate of economic growth strengthened in the three months to July, with business and professional services the driving force, the latest CBI growth indicator has concluded.
The survey of 736 businesses across the manufacturing, retail and service sectors showed a reading of +20% in the three months to July, compared with +14% in June.
The rebound was largely due to a faster pace of growth in business and professional services with manufacturers and retailers reporting growth, albeit at a more moderate pace.
The business organisation said expectations remained robust, with firms anticipating that growth would strengthen a little further in the next three months (balance of +27%).
Anna Leach, CBI Head of Economic Analysis, said: “A healthy pace of growth puts the economy on a firm footing going into the third quarter and it looks set to stay that way through the rest of this year, as low oil prices and inflation help support spending.
“Business and professional services helped lift the economy in the previous three months as they bounced back from a temporary blip last month.
“But the strength in Sterling continues to cause headaches for exporters trying to sell inside the Eurozone.”
The indicator includes survey results for output volumes as reported on a monthly basis for the manufacturing, distribution, consumer, business & professional services. It offers an early perspective on the pace of economic growth and covers around 75% of the private sector economy.
