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UK private sector growth eases in three months to January, says survey

Betsie Van der Meer | DigitalVision | Getty Images

The three months to January saw private sector growth ease, according to the latest Growth Indicator from the Confederation of British Industry (CBI).

Seven hundred and fifty three respondents – from the distribution, manufacturing and service sectors – were surveyed. Their answers showed that growth had eased to a balance of +10 percent, down from December's +17 percent figure, but similar to November's +9 percent and October's +8 percent.

The CBI's Growth Indicator is made up of data on output, sales and business volumes taken from the CBI's Industrial Trends Survey, its Distributive Trades Survey, and its Service Sector Survey.

Retailers had reported "decent growth" during the previous three months, the CBI said, with the output growth of manufacturers also "robust."

The CBI added that expectations were for growth to continue at a similar pace over the next three months, at +12 percent.

"Resilience has been the hallmark of the U.K. economy since the EU Referendum," Rain Newton-Smith, the CBI's chief economist, said in a statement on Monday.

"But higher inflation is on the way, which will erode consumer incomes, while the impact of uncertainty since the referendum may cause investment spending to slow this year," Newton-Smith added.

"While businesses are committed to making a success of Brexit, making progress on improving the U.K.'s productivity remains the number one priority."

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