UK Economic Growth Slowest in Three Years
Manufacturing, business and professional services have performed poorly while retail businesses have seen sales figures increase
The UK’s economic growth is at its lowest in three years, according to a report by the Confederation of British Industry (CBI).
The survey of 759 respondents across the manufacturing, retail and services sectors, showed the pace of growth has dropped to its slowest rate since May 2013.
Last week official figures put UK growth at 0.5% in the last quarter of 2015, the slowest for three years.
The slowdown was mainly driven by the business and professional services sector – which includes management, legal services and telecoms.
In the manufacturing sector, output and new orders were flat, but growth in the consumer services sector remained consistent, and retail sales volumes grew at an above average pace.
Despite the negative trend, the outlook for businesses over the next three months is more positive with an above average rise in output expected.
Newton-Smith, CBI’s director of economics, said:
“Manufacturing and business and professional services have struggled to make a mark, but a healthier picture can be seen in the household-focused consumer services and retail sectors.
“The overall domestic outlook still looks fairly secure, and a rise in output across all sectors is expected in the coming three months”.