The rate of economic growth slowed in the three months to June, but activity remained solid across the quarter as a whole, according to the latest CBI growth indicator.
The survey of 752 respondents across the manufacturing, retail and service sectors showed a reading of +14% in the three months to June, compared with +33% in May. This slowdown was largely due to last month’s fast pace of growth in business and professional services not being sustained.
Nonetheless, expectations are buoyant, with respondents anticipating that growth will bounce back in the next three months (balance of +32%).
UK manufacturing growth gained a bit of traction, but overall remained moderate, whilst retail sales volumes rose robustly in the year to June, albeit at a slower pace than previously.
Rain Newton-Smith, CBI Director of Economics, said:
“Despite an easing in performance this month, activity over the quarter as a whole has been good. We expect the economy to sustain a solid pace of growth over the remainder of the year as lower oil prices and inflation continue to boost real incomes and consumer spending.
“But exporters face real challenges, especially from the impact of a stronger pound against the Euro and still weak global export markets.
“And whatever the results of the referendum in Greece, we urge Eurozone leaders to move quickly towards a deal that underpins both growth and financial stability, providing certainty for Greece and the wider Eurozone.”