New figures show
UK private sector activity saw only mild growth in the three months to September, but firms expect the pace of growth to pick-up, according to the latest CBI Growth Indicator.
Output growth across the manufacturing, distribution and service sectors was broadly flat (+3 per cent) – a slowdown in activity from the previous month (+8 per cent).
Growth continued at a similarly healthy pace to last month in manufacturing and distribution, but there was a small fall in business volumes in the services sectors. The survey of 778 respondents showed that over the next three months, firms anticipate strong private sector growth (+22 per cent) underpinned by a rise in expectations across manufacturing, distribution and service sectors.
Rain Newton-Smith, CBI Chief Economist, said:
“While the economy has seen slight growth this month, firms are confident that autumn will bring a surge in activity.
“Exporters continue to reap the benefits of a weaker Sterling, but our services sector has not only felt a rise in uncertainty over demand, but also a drop in their sales volumes.
“With businesses keen to build momentum for the rest of the year and into 2017, they want the Government to outline clear plans for negotiations to leave the EU and deliver an Autumn Statement that will drive investment and deliver economic growth and prosperity.”