UK economic growth is set to pick up in the next three months, according to data from the CBI.
Figures from the CBI’s growth indicator show growth holding steady for the three months to March, with signs of positivity for the next quarter.
In a survey of 764 businesses, the CBI found stronger growth in retail, wholesale and motor trades business making up for weaker performances in manufacturing, where the CBI found 11 of 18 sectors reporting slower growth since February.
In addition, business and professional services firms also reported feeling the effect of stronger competition.
However, a pick-up in business & professional and consumer services, and the manufacturing sector, is expected to boost business growth, with a balance of expectation at +25 per cent.
The figure represents a dramatic increase on the +18 per cent recorded for March, and comes after the CBI boosted its UK growth forecast on the back of dipping inflation.
CBI deputy director general Katja Hall says: “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.”
Hall adds: “The main risk to the UK economy comes from the Eurozone, with continuing wrangling over Greece’s bailout package stoking uncertainty. Plus, many businesses will also have to contend with a stronger pound weighing down on already weak export growth.”