Businesses expecting higher growth rate over next quarter, according to CBI
Businesses are expecting a higher growth rate over the next quarter, according to the Confederation of British Industries (CBI).
The latest growth indicator, which surveyed 750 respondents, showed that growth in the UK’s private sector has remained steady over the past three months.
The survey found that growth in sectors throughout the UK was mixed, with the manufacturing sector and business and professional services sector both experiencing slow or little growth. However, consumer services and retail business was found to have had good growth in the three months to October.
According to the CBI, growth is set to slow down considerably, despite businesses experiencing better growth than expected since the UK’s vote to leave the EU earlier this year. Annual growth is now predicted to be 1.3 per cent, down from May’s predicted growth rate of 2 per cent, which the CBI said is a result of businesses facing cost pressures after the fall in value of the British pound.
Whilst the CBI predicts that growth will slow down, the survey showed that businesses are expecting a higher growth rate of 11 per cent over the next three months.
CBI Chief Economist, Rain Newton-Smith, commented on the survey, saying that it is encouraging that private sector growth continues to rise, and that steady growth is expected as we head into next year.
She added: “Businesses will be pleased by the welcome measures in the Autumn Statement to unlock research and development spending, spur innovation and upgrade crucial infrastructure. By further prioritising spending, the Government can seize the opportunities to deliver growth and prosperity across the UK's regions and nations.”