CBI survey shows optimism but warns of slow recovery
A survey from the Confederation of British Industry (CBI) has provided some optimism for the UK economy but the business group warns of a drawn-out recovery.
According to the CBI, its survey found business volumes stabilising across the services sector over the last three months.
Meanwhile, the survey found that consumer services, which include hotels and travel, business was at its best level for over two years.
However, the CBI found that the outlook for employment was poor with both the professional services and consumer sectors trimming headcount.
Ian McCafferty, the CBI’s chief economic adviser, said: “Overall, these figures are consistent with our view that the economy is recovering slowly, but that we will have to wait a while before growth picks up.”
In addition, a survey from the manufacturers’ lobby group, the EEF, also said its members were experiencing improved levels of business.
According to the EEF, one of the strongest performing sectors in recent months was electronics, while the motor industry (boosted by the Government’s car scrappage scheme) also noted a rise in output.
Last week, the Office for National Statistics (ONS) revealed that the UK economy grew by 0.3% in the October to December period – slightly higher than the 0.1% estimated last month.
Last week’s revision from the ONS was the second of three estimates of GDP for the fourth quarter. The third and final estimate will be published later this month with hopes of a further upward revision.