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Growth expectations are strongest since 2003

Expectations for UK economic growth are at their strongest since 2003, a CBI Growth indicator suggests.

Output rose from the eight-month low recorded in the previous month, and remains well above average, indicating that the UK’s economic recovery is steadily advancing.

Growth strengthened across the retail and service sectors, while manufacturing output growth remained solid - according the survey of 675 businesses.

Katja Hall, CBI chief policy director, said: “These latest growth figures, and the strong expectations for the next quarter, provide further encouraging signs of increasing vigour and confidence across the UK economy.

“While consumer spending accounted for the lion’s share of GDP growth last year, there are firm indications of growth becoming more broad-based. It’s good to see that business investment has consistently contributed to quarterly growth since 2013.

“We expect growth to strengthen in 2014, underpinned partly by rising business and consumer confidence and supportive monetary conditions. Productivity and earnings are also expected to start recovering this year.”

This was posted in Bdaily's Members' News section by Tom Keighley .