UK Economy Continues to Gain Momentum
CBI reports UK economy grew 0.7% in the three months up to March, with further expansion forecast over next three months
The UK economy appears to be continuing to gather strength, with the Confederation of British Industry’s (CBI) Growth Indicator report revealing a growth increase of 0.7% in the three months up until March.
The report, which includes the accounts from 764 private businesses, found that private sector growth for January to March 2015 was up 18%, with retail, wholesale, motor trades and consumer services growing stronger in March than in the previous month.
The business lobby group believe that the economy will continue to gain traction in the current quarter as its monthly survey suggested that manufacturing, business and consumer services companies – which have experienced a slowdown in growth from February – expect growth in the coming months.
According to the CBI’s report, risks to this forecast progression would lie in exporting due to continued Eurozone worries and Greece’s bailout package, alongside the stronger pound value impacting upon enterprises’ overseas sales.
The CBI’s deputy direct general, Katja Hall, commented on the positive figures:
“The outlook for 2015 looks encouraging. Our surveys show it has been a solid start to the year with the prospect of stronger growth to come.
“The benefits of lower oil prices should be increasingly felt; with cheaper petrol boosting households’ incomes and spending power, and cutting costs for many businesses.”