According to the Confederation of British Industry’s (CBI) latest growth indicator, private sector output growth is maintaining a healthy pace, suggesting the recovery is showing no sign of slowing down at present.
Official figures published last week found that GDP has surpassed its pre-recession peak.
The survey of 790 respondents across manufacturing, retail and service sectors registered strong growth, with a balance of +29 per cent, the same as last month’s survey.
The CBI composite survey indicator offers an early perspective on the page of UK economic growth and covers around 75 per cent of the private sector economy.
Expectations for growth in Q3 2014 are also encouraging, with a balance of +37% of respondents reporting that output will increase further in the next three months.
In the quarter up to July, output volumes within the manufacturing sector grew at its strongest pace for five months. Business and professional and consumer services have also enjoyed steady growth of late while retail sales volumes rose solidly year-on-year in July.
Katja Hall, deputy director-general, CBI, said: “The recovery shows little sign of slowing and it’s looking likely that GDP has surpassed its pre-crisis peak.
“There are signals that the recovery may now be on a more sustainable footing, with growth becoming more broad-based as business investment in particular grows strongly.
“But there are still long-standing issues around boosting exports, while disappointing productivity could impact wages and household spending.
“Firms will also be carefully monitoring the situation in Ukraine and parts of the Middle East, where political volatility is likely to make the global economic environment that bit tougher.”
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