UK Industry Expects Growth to Slow down Towards Year End

Private sector growth in Britain slowed in the three months to October, a new report showed on Wednesday, which cautioned that overall economic growth would plateau in the final quarter of 2014.

The Confederation of British Industry’s (CBI) latest Growth Indicator, which looks at the pace of economic growth and covers around 75 percent of the private sector economy, found that growth nonetheless remained above its long-term average in the third quarter.

It was expected to pick up again in the coming three months, but the employers’ organization said in a statement: “The latest data is broadly in line with our view that GDP (gross domestic product) growth will ease slightly over the remainder of 2014.”

Figures released last week showed the rate of growth of the U.K. economy slowed slightly in the third quarter as manufacturing expansion eased and growth in the services industry cooled.

Britain’s gross domestic product (GDP) expanded by 0.7 percent in the three months to September from the previous quarter, the Office for National Statistics said on Friday. Year-on-year, the economy grew 3 percent, with both figures meeting analyst expectations.

The CBI forecasts growth of between 0.6 percent and 0.7 percent for the rest of this year.

via CNBC

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