UK economic growth is speeding up, says CBI

The Confederation of British Industry says that the speed of UK economic growth is increasing.

Business activity rose significantly in the three months to May, according to research carried out by the CBI.

Rain Newton-Smith, the CBI’s director of economics, said growth had “cranked up several gears”.

The UK economy only expanded by 0.3% in the first quarter of 2015, according to official figures.

But the CBI says that all sectors of the economy are now expanding, with the private sector performing especially well, according to its latest survey of over 800 companies.

Mr Newton-Smith commented:

“As we move through the second quarter, growth has cranked up several gears and businesses expect that faster pace to continue.

“This supports our belief that the weaker-than-expected GDP growth in the early months of 2015 will be short-lived.

“A stellar increase in activity in the business and professional service sector and retail sales bounding ahead are clear indications of strong business and consumer confidence and increased spending power.

“UK exports are likely to be helped by renewed momentum in the euro area but the stronger pound and weak demand in many overseas markets continue to pose challenges.”

CBI stresses that EU membership is a must

The CBI said that as things improve economically in the Eurozone (the UK’s largest trading partner) then growth could be boosted further.

The CBI stresses that EU membership is a must. Earlier this month it urged companies to “speak out early” in favour of remaining within the world’s largest trading bloc. Sir Mike Rake, CBI president, said there are “no credible alternatives” to being a member of the EU.