Growth eases slightly but should pick-up over summer
Our latest Growth Indicator for May
Private sector growth eased in the three months to May, according to the CBI’s latest Growth Indicator.
The survey of 721 respondents across the manufacturing, distribution and service sectors showed that growth slowed a little (+13%), in comparison to April (+18%).
The slowdown in momentum was mainly driven by business & professional services. Manufacturing output continued to record a robust expansion, with the retail sector and consumer services gaining a little momentum following a lacklustre start to the year.
Overall, expectations are for the pace of growth in the private sector to pick up a little over the next three months (+18%), with healthy demand growth in manufacturing and business & professional services off-setting a slowdown in retail and falling volumes in consumer services.
Rain Newton-Smith, CBI Chief Economist, said:
“The UK economy continues to perform solidly, if not spectacularly. Emboldened by a weaker currency, our manufacturers are getting on with it and recorded strong growth again this quarter.
“But on the other hand inflation is starting to bite, having an impact on household incomes with costs rising at the factory gate and on the high street.”