Private-sector growth eased in the three months to May, according to the CBI’s (
www.cbi.org.uk) latest Growth Indicator. The survey of 721 companies from across the manufacturing, distribution and service sectors showed that growth slowed a little in comparison to April.
Manufacturing output continued to record a robust expansion, with the retail sector and consumer services gaining a little momentum following a lacklustre start to the year. Overall, expectations are for the pace of growth in the private sector to pick up a little over the next three months.
Rain Newton-Smith, CBI chief economist, said: “The UK economy continues to perform solidly, if not spectacularly. Emboldened by a weaker currency, our manufacturers are getting on with it and recorded strong growth again this quarter. On the other hand, inflation is starting to bite and having an impact on household incomes, with costs rising at the factory gate and on the High Street.”
Meanwhile, the CBI has responded to the Department for Transport’s Consultation on the Draft Airports National Policy Statement:
New runway capacity and infrastructure at airports in the South East of England.
Its response argues that the UK’s future prosperity depends on the delivery of additional airport capacity in the South East, adding that expanding the UK’s hub capacity through a new runway at Heathrow is the right decision now in order to improve connectivity and competition and must be done in the most efficient and cost-effective way.
"The CBI also says that additional capacity will drive trade and investment, and boost growth right across the country. Heathrow expansion must be the starting point for more-strategic thinking on UK aviation, maximising existing capacity and ensuring that long-term needs can be met.”