LONDON: UK economic growth has “cranked up several gears” to its fastest pace for a year, boosting hopes that a slowdown in the first quarter of 2015 will be short-lived, figures suggest.
The CBI’s latest growth indicator found that expansion in the three months to May reached its strongest rate since May last year.
Figures derived from surveys of 811 businesses showed a reading of plus 33%, compared with plus-35% a year ago, and optimism was also strong, suggesting firms expect the strong pace to continue.
The CBI said growth had quickened in all main sectors, with a modest uptick for manufacturing, strong growth for retail, and a “standout” performance for business and professional services – which includes accountancy, legal and marketing firms.
The latter recorded its fastest growth in business volumes since February 2006 and was the main driver of the overall acceleration, the survey found.
Expectations are that this sector’s growth will slow though remain robust in the next three months, made up for by stronger growth in consumer services – including hotels, bars, restaurants, travel and leisure – as well as retail and manufacturing.
