David Cameron, UK prime minister, with the other six leaders of the G7 leading industrialised nations, together with the presidents of the European Commission and European Council, meet in the Hague, Netherlands, March 24, 2014.|
UK economic growth slowed in March to an eight-month
low after hitting record levels in February, according to the latest CBI Growth
Indicator, which is produced by the Confederation of British Industry.
On Tuesday, the UK's main business lobby, said
retail sales grew again in the year to March, although at a slower pace, but
growth next month is expected to rebound strongly. That’s according to the CBI’s
latest monthly Distributive Trades Survey.
On GDP growth, the CBI said today that despite slowing down, growth remains strong and well above average, as the
recovery in the UK economy continues to bed down.
All sectors contributed to the slowdown in output growth, although the majority
was accounted for by the consumer services, business and professional services
and retail sectors.
The outlook for the next quarter is bright however, with growth expected to
accelerate again, driven by strength in the service sector.
The survey of 622 respondents across manufacturing, retail and services
registered robust growth in output volumes, with a balance of +19%, down from a
record +32% in February. Firms are optimistic about the outlook for output
growth over the next quarter with the expectations balance at +36%.
Anna Leach, CBI
Head of Economic Analysis, said: “Although growth has slowed from record levels last month, it remains strong and
firms are optimistic it will pick up again in the next quarter.
“As this year progresses, we expect further increases in business and consumer
confidence. Productivity and earnings should also start to recover.
“However, global developments continue to pose a risk to UK growth, not least
the risk of renewed problems in the Eurozone. And although our direct trade and
financial links with the Ukraine and Russia are relatively small the crisis
could have potential implications for global commodity prices, which may impact
inflation in the UK.”
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