WIREDGOV

Ahead of the latest official GDP statistics, the CBI said the volume of output in the three months to January grew at the fastest pace since late 2007, with the outlook for the next quarter buoyant. That is according to a new CBI Growth Indicator launched.

Growth Indicator echoes latest GDP figures >>

The CBI Growth Indicator is a new monthly composite of the leading business organisation’s economic surveys spanning manufacturing, retail and the services sector. It offers an early perspective on economic growth and covers close to 75% of the private sector economy.

When compared with historic composite CBI economic data, the first Growth Indicator of 630 respondents, shows the fastest pace of growth in output volumes (+30%) since September 2007 (+30%). This reflects the recent strong performances seen across the business & professional services, consumer and distribution sectors, while the manufacturing sector posted decent growth.

Companies also have a positive outlook with an expectation of robust output growth (+28%) for the next quarter.

Katja Hall, CBI chief policy director, said:

“A picture is unfolding of a real upsurge in output across much of the UK economy. Many firms in many sectors are feeling brighter about their prospects than they have for a long time, showing the recovery is gaining traction.

“We certainly need companies investing more and creating a bigger footprint in fast-growing markets, and while some risks remain, we expect the economy to continue to strengthen through 2014.

“The new CBI Growth Indicator will be an important barometer of the UK’s current and near-term economic performance, covering around three-quarters of the private sector.”