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CBI: UK economy expected to grow after ‘solid start’ to year

by: Carmen Reichman
  • 08/04/2015
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CBI: UK economy expected to grow after ‘solid start’ to year
The Confederation of British Industry (CBI) has estimated the economy grew by 0.7% in the first quarter of the year and will 'gather momentum' over the next quarter.

The estimated growth compares to a 6% economic expansion in the previous quarter.

The business lobby group pointed to stronger growth in the distribution and consumer services sectors in March, compared with the previous month.

It said it expects this sector to continue growing in the coming months, alongside the manufacturing and business and professional services sectors, which had performed less well having felt ‘the effect of stronger competition’.

The main risk to the UK economy comes from uncertainty in the Eurozone around Greece’s bailout package and the effects on export trading brought by a stronger pound, the CBI said.

The group surveyed 764 businesses across a range of business sectors.

Overall private sector growth of +18% in the three months to March was ‘almost unchanged from the three months to February (+19%)’, the CBI found.

The reading indicates the number of firms reporting that business performance was up, compared to those reporting it was down.

Deputy director general Katja Hall said: “The outlook for 2015 looks encouraging. Our surveys show it’s been a solid start to the year with the prospect of stronger growth to come.

“The benefits of lower oil prices should be increasingly felt; with cheaper petrol boosting households’ incomes and spending power, and cutting costs for many businesses.”

 

 

 

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