Private-sector growth slowed slightly in the three months to March, according to the CBI’s (www.cbi.org.uk)latest Growth Indicator.

The survey of 714 respondents in the manufacturing, distribution and service sectors showed the pace of output growth easing to a balance of +11%, from +15% in the three months to February.

While manufacturing output growth expanded strongly in the three months to March, growth in consumer services and retail slowed, and activity among business and professional services firms was unchanged for a second month. However, firms expect growth to pick up over the next quarter.

Rain Newton-Smith, CBI chief economist (pictured), said: “Momentum eased towards the end of the first quarter, particularly among consumer service and retail companies, but expectations for the quarter ahead are healthy across all sectors.

“However, headwinds are strengthening, as higher inflation drives up costs for businesses and eats into household incomes, particularly against the backdrop of subdued wage growth.

“Businesses are committed to playing their part in addressing regional differences in productivity across the UK, which is the only sustainable route to higher pay and increased living standards across the UK’s regions and nations."