GDP and Growth Indicator both suggest economic revival continues
OUTPUT volumes in the three months to February grew at their fastest pace since records began, according to the latest CBI Growth Indicator.
The results came as official figures confirmed that GDP grew strongly in the fourth quarter of 2013.
The CBI said the Growth Indicator provided further evidence that economic momentum had carried through at a healthy pace into the beginning of 2014, as consumer and business confidence continues to build, global growth strengthens and monetary policy remains supportive.
The survey of 639 respondents across manufacturing, retail and services registered the fastest growth in output volumes (+32%) since the CBI’s records began in late 2003. Growth was broad-based and slightly faster than the three months to January (+30%).
Firms are also extremely optimistic about the outlook for output growth over the next quarter with the expectations balance also at a record (+41%), a significant jump on last month results (+28%).
Katja Hall, CBI Chief Policy Director, said: “The recovery is gaining real momentum with growth in output volumes at the highest since our records began and growth broad-based across manufacturing, retail and service sectors.
“The surge in confidence among firms for the next quarter suggests the recovery will continue to gain traction.
“Looking ahead, strengthening global growth and supportive monetary policy should continue to bolster a broadening and deepening recovery in the UK.”
Commenting on the latest GDP figures, Richard Halstead, Midlands Region Director at EEF, the manufacturers’ organisation, said: “While household spending was again the main driver of activity there was an encouraging uptick in business investment and a small positive contribution from net exports.
“Looking forward, the near-term outlook remains positive given the positive opening months of 2014 and, with the risks to the global economy appearing more balanced than for a number of years, the key question for 2014 is whether companies are feeling sufficiently confident to translate their strong investment intentions into concrete action.”
He said next month’s Budget had to send out a powerful signal that government would continue to act on delivering a competitive business environment that would give the private sector confidence to invest.
