According to a survey by CBI, the UK economy saw its slowest rate of growth since May 2013 in the three months to January.
The survey, which comprises manufacturers, retailers and the services sector, revealed a balance of 6% reporting increased business.
CBI’s Director of Economics, Ms Rain Newton-Smith, said the economy has had a “tough start to the year”, commenting: “Manufacturing and business and professional services have struggled to make a mark, but a healthier picture can be seen in the household-focused consumer service and retail sectors.”
Official figures last week put UK growth at 0.5% in Q4 2015, which is the slowest for three years.
CBI’s Growth Indicator shows professional services firms; Telecoms, legal and computing services, as the outputs with the biggest slow down.
There are also reports which have suggested that the Bank of England is to cut its UK economic growth forecasts this week to around 2.3% for 2016, compared with 2.5% in November 2015.
This Thursday, the latest inflation report will be released by the central bank which will keep interest rates unchanged, amid concerns about global economic volatility.
However, the Treasury still have a positive outlook, with a spokesperson for it adding: “Despite turbulence in the global economy, Britain is pushing ahead and continues to grow steadily.”
