CBI: economic growth slow but solid
UK economic growth slowed in the three months to October, but remains relatively solid, according to the CBI’s latest Growth Indicator.
The survey of 749 businesses revealed slower growth across all sectors of the economy, with manufacturing the weakest performer on the back of deteriorating export orders.
The resulting survey balance of +19% remains above the long-run average but is weaker than last month’s survey balance of +23%.
Looking ahead to the next quarter, businesses are predicting slightly stronger growth of +25% having scaled back their expectations for growth since the August survey (+38%) and from earlier in the year.
Rain Newton-Smith, the CBI’s director of economics, says: “Manufacturers in particular are feeling under pressure as export growth continues to disappoint. Faced with huge political and economic uncertainties, ranging from a weak Eurozone, a deteriorating outlook for emerging markets and an increasingly febrile geo-political climate, it’s little wonder that firms have been gradually scaling back their predictions for growth.”