UK economic growth robust, study finds

The latest data from the Confederation of British Industry (CBI) suggests that UK economic growth is robust, and continues to be driven by flourishing export activity spurred on by the weak pound.

According to the CBI’s latest report, the number of British companies that reported growth in the three months to September far outstripped the number of those that experienced a fall in output.

The research reveals around 11 per cent more firms reported growth in the final few months of the summer – a trend which the CBI believes will continue into autumn and winter.

18 per cent of businesses told the group’s survey that they were anticipating further growth in the near future, up from just 16 per cent of firms which said the same back in August.

Despite this, however, the CBI has voiced concerns that signs of momentum are limited and that the Government ought to intervene in a bid to boost British growth and productivity.

CBI Chief Economist, Rain Newton-Smith, said: “Growth in the economy has held steady through the summer, although at a slightly slower pace than expected by many firms.

“While we saw growth in most sectors, consumer-facing businesses are having a tougher time of it as inflation tightens purse strings a little more.

He added: “As we head to the Conservative Party conference, businesses will want to know that the Government is not allowing the domestic agenda to be put on the back-burner.

“Firms want to see plans set out to raise productivity across the country, by delivering on a modern industrial strategy, raising spending on innovation and improving educational attainment.”

Posted in Economy.