In the three months to February, economic growth saw a small improvement compared to poor performance in January, resulting in improved expectations for the coming quarter, according to CBI’s latest Growth Indicator.
The survey, which comprises 790 respondents from the manufacturing, retail and service sectors, found that the private sector’s growth saw a marginal push, with +8% of firms reporting a rise in output, compared to the +6% in January.
The consumer services sector also performed well for growth, with +21% of respondents reporting improvements, as did retail sales (+11%), despite easing to the slowest pace since July 2015.
However, the business and professional services sector remained flat for the second consecutive month in February at +1%, the weakest it has been since 2013. While manufacturing saw output of 0% following two months of declines.
For the next three months, the outlook rose to a strong, above average, showing at +19%.
CBI’s Director of Economics. Rain Newton-Smith, commented: “The British economy has made a slow start to the year, and growth has remained in the doldrums in February. It’s encouraging that growth in consumer services has held up and manufacturing output has stopped declining, but retailers and business and professional services firms are feeling the pinch.
“With global risks increasing this year following the volatility seen in financial markets, businesses will be keeping a close eye on any possible impact on domestic activity.
“It’s important that the Budget later this month gives business a clear signal that the Government stands behind it in driving growth, by bringing the UK’s business rates system up to date, supporting investment through the capital allowance system and equipping our world-class innovators with the tools they need to compete.”
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