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Business investment has a hand in robust growth say CBI

Growth and recovery of the UK economy remains robust, the CBI says, and business investment has had a bigger part to play than previously thought.

While the business body’s latest monthly indicator shows consumer spending has still contributed the lions share of growth, investment made greater contribution than had been thought.

A slight slowing down meant growth in February hti an eight-month low, but the CBI remained confident that recovery was embedded.

Business surveyed to provide the indicator suggested confidence that service sector growth in the next quarter would provide more strength.

Anna Leach, CBI head of Economic Analysis, said: “Although growth has slowed from record levels last month, it remains strong and firms are optimistic it will pick up again in the next quarter.

“As this year progresses, we expect further increases in business and consumer confidence. Productivity and earnings should also start to recover.

“However, global developments continue to pose a risk to UK growth, not least the risk of renewed problems in the Eurozone. And although our direct trade and financial links with the Ukraine and Russia are relatively small, the crisis could have potential implications for global commodity prices which may impact inflation in the UK.”

This was posted in Bdaily's Members' News section by Tom Keighley .