UK business growth reaches two-year high, according to survey

A survey from the Confederation of British Industry (CBI) has shown that businesses in the UK grew at the fastest rate since December 2015 in the three months leading up to February.

The CBI’s monthly growth indicator surveyed more than 670 respondents across sectors such as business and professional services, and found that business output more than doubled to +20 last month, up from +9 in the three months leading up to January.

Higher

The survey showed that growth was higher than the long-run average across most sectors, with businesses in the professional services and business sectors growing at their fastest rate in more than two years.

The rise in business output comes despite issues over Brexit, with the CBI saying that uncertainties have been holding back business investment, especially in larger projects.

The CBI has positive expectations in terms of future growth, with the overall growth rate in the private sector expected to increase up to +24 in the three months leading up to May and overall growth for 2018 predicted to be similar to last year.

Positive

Commenting on the survey, CBI Chief Economist Rain Newton-Smith said: “It’s good to see firm growth in the UK economy this month, and expectations of growth into the next quarter also look positive.”

“However, both businesses and consumers continue to grapple with uncertainty over the economic outlook and Brexit, so the government must help counter this by intensifying its focus on the domestic agenda.”