Economic growth is slow but solid, according to latest CBI survey

Economic growth slowed in the three months to October, but remains relatively solid, according to the CBI’s latest Growth Indicator which is published today.
By The Newsroom
Published 29th Oct 2014, 06:00 BST

The survey of 749 businesses revealed slower growth across all sectors of the economy.

Manufacturing was the weakest performer, on the back of deteriorating export orders. The resulting survey balance of +19 per cent is above the long-run average, but slightly weaker than last month’s survey balance of +23 per cent.

Hide Ad
Hide Ad

Looking ahead to the next quarter, businesses are predicting slightly stronger growth of +25 per cent, which is similar to the pace expected in September (+27 per cent). However, businesses have scaled back their expectations for growth since the August survey (+38 per cent), and from earlier in the year.

Rain Newton-Smith, the CBI’s director of economics, said: “The economy is continuing to grow at a slower, but nonetheless solid pace. This isn’t surprising since we expected growth to tail off somewhat in the second half after a strong start to the year. Despite all the international headwinds, it’s encouraging to see our surveys showing a steady expansion in the UK economy. Nonetheless, manufacturers in particular are feeling under pressure as export growth continues to disappoint.”