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UK business optimism 'highest in a decade'

02/06/14

The UK economy is advancing at its fastest pace in more than ten years, as businesses and consumers alike adopt a more positive approach to their finances.

According to new data from the Confederation of British Industry (CBI), the services, manufacturing and retail industries reported improvements during
May, with 35 per cent of firms estimating their output had increased on the previous month.
What's more, a further 30 per cent of those questioned by the body predict growth will continue during the next quarter.
Economic growth surpassed record highs in May, with the CBI reporting the reading reached its peak since the report began in 2003.
Commenting on the data, Katja Hall - deputy-general at the CBI - said rising business and consumer confidence had played a significant role in the improving outlook.
She added: "What’s encouraging is that growth is becoming more broad-based, with solid increases in business investment over the past year. This bodes well for the year ahead."
However, the official warned that global developments could pose a potential risk to continued growth, including the possibility that the ongoing dispute between Russia and Ukraine could affect global commodity prices.
"With the eurozone crisis still far from being fully resolved, the UK continues to be exposed to a prolonged period of subdued activity in the region," Ms Hall remarked.
Figures released by the CBI earlier this month found the service sector is continuing to feel the benefits of the improving economic situation by taking on more employees.
The body's quarterly Service Sector Survey revealed firms were increasingly confident about their business prospects in the three months to May 2014, rising at the fastest rate since the survey began in 1998.
Analysts also found companies have continued to recruit new members of staff and spend more on training as the economy picks up after the downturn.

 

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