CBI Says UK Growth Steady but China Crisis to Affect Trade

UK growth picked up pace in the three months to August but the economy faces risks from the knock-on effect of turbulence in China, one of the UK’s leading independent employers’ organisations has said.

A CBI survey of 754 firms showed the rate of expansion heading higher for the second successive month with expectations for the next three months also buoyant. It said the gap between firms reporting higher output volumes and those saying they were lower was at a positive balance of 31%, up from 20% in the three months to July and the best rate since May. The balance of firms expecting growth in the next three months was unchanged from July at 27%.

The CBI’s director of economics, Rain Newton-Smith, said: “The weather may have been a washout this month, but the sun has certainly been shining on the British economy. The pace of growth has been energised across the sectors, and it is good news that this is set to continue as we head into the autumn.”

Business and professional services – including accountancy, law and marketing firms – as well as retail made particularly large contributions, though growth in manufacturing remained broadly flat, the CBI said.

via The Guardian

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