CBI expects UK economy to gather pace in Q2 2015

The Confederation of British Industry (CBI) believes the UK economy expanded by 0.7 per cent in Q1 2015, up from 0.6 per cent in the previous quarter, and forecasts it will continue to “gather momentum” in the next quarter.

The business lobby group highlighted stronger growth in the distribution and consumer services sectors last month, compared with the previous month and anticipates this to continue to expand in the next quarter alongside the manufacturing and business & professional services sectors.

The CBI says the main risk to the UK economy is the eurozone’s continued economic uncertainty due to the Greek bailout package and the impact of export trading brought about by a stronger pound.

A total of 764 businesses across a host of industries were polled by the CBI in a bid to measure individual and overall business performance in the UK.

Overall growth in the private sector totalled +18 per cent in the three months to March was “almost unchanged from the three months to February (+19 per cent)”, according to the CBI.

The reading suggests the number of firms reporting that business performance was up, compared to those reporting it was down had only partially declined.

Katja Hall, deputy director general, CBI, said: “The outlook for 2015 looks encouraging.

“Our surveys show it’s 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.”

Last updated: 24th April 2015