A new monthly ‘Growth Indicator’ launched today by the CBI suggests the volume of output in the three months to January grew at the fastest pace since late 2007. And the outlook for the current quarter is buoyant.
The new monthly composite of the business organisation’s economic surveys spans the retail and services sectors as well as manufacturing. It offers an early perspective on economic growth and claims to cover close to 75% of the private sector economy.
When compared with historic composite CBI economic data, the new indicator shows the fastest pace of growth in output volumes since September 2007 with the manufacturing sector lagging behind retail and services results but still posting “decent growth”.
CBI chief policy director Katja Hall said: “A picture is unfolding of a real upsurge in output across much of the UK economy. Many firms in many sectors are feeling brighter about their prospects than they have for a long time, showing the recovery is gaining traction.
“We certainly need companies investing more and creating a bigger footprint in fast-growing markets, and while some risks remain, we expect the economy to continue to strengthen through 2014.”
Copyright Ken Hurst 2014