UK Private Sector Growth ticks up at end 2015 – CBI GROWTH INDICATOR

The UK economy has finished 2015 strongly, according to the latest CBI Growth Indicator,

especially with business services showing impressive growth.

The CBI survey of 766 respondents, which comprises economic activity across manufacturing, retail and business & consumer services sectors, found growth improving following weaker figures reported last month.

The balance of firms reporting rising output was +20%, compared with +13% in November, well above the long run average of +5%.

Recovering growth across the retail and wholesale sectors was buttressed by a strong year end among business and professional services, though manufacturers, especially exporters, continue to face difficult times.

Overall, the economy is expected to grow at a similar pace over the next three months (+20%), well above the long-run average (+10%). 

“Nonetheless, there is no room for complacency in 2016 as significant challenges to global growth remain, "said Carolyn Fairbairn, CBI Director-General. “Many emerging markets are facing a testing time, with China moving to a slower growth path and other emerging economies being buffeted by low commodity prices, capital outflows and currency depreciation. 

Fairbairn added, “The picture differs markedly by sector. Manufacturers are having a tough time, with the strength of sterling hitting their competitiveness in the Eurozone and the slowdown in emerging markets weighing on export demand. And the North Sea industry and its suppliers are feeling the impact of falling global oil prices.”