As strong output growth continues and rising
business investment supports the sustainability of the recovery, the UK economy
has continued to grow briskly in the second quarter, according to the latest CBI
growth indicator, which is produced by the UK's top business lobby.
The survey of 830 respondents across the manufacturing, retail and service
sectors again registered robust growth, with a balance of +29%. While the pace
of output growth eased slightly in the three months to June, down from a record
figure in May, expectations for the next quarter are for a strong pick-up. A
balance of +41% of respondents believe that output will increase further in the
three months ahead.
Demand for UK manufacturing strengthened and while sales growth in the
distribution sector slowed, expectations for the next quarter are among the
strongest on record. For the business & professional and consumer services
sector growth continued at a solid pace in the three months to June.
Katja Hall, CBI deputy director-general,
said: “Our growth indicator provides firm evidence that UK GDP is now returning
to its pre-recession peak, as the recovery forges ahead
“The solid pace of growth across several sectors shows that confidence among
firms is still rising.
“Businesses will be carefully monitoring events in Ukraine and parts of the
Middle East, where difficult situations are likely to have an adverse impact on
the price of oil and other global commodities.”